Binance Lawsuit Rumors Denied by Wintermute’s Gaevoy: Report
- Wintermute CEO Evgeny Gaevoy denied rumors of suing Binance after the October 10 flash crash.
- Bitcoin plunged 15% below $103,000, erasing $20 billion in leveraged trades within minutes.
- Binance dismissed the claims as false while markets faced volatility and widespread panic.
Wintermute CEO Evgeny Gaevoy denied reports that his firm plans to sue Binance over the October 10 flash crash. During the event, Bitcoin dropped 15% below $103,000, wiping out nearly $20 billion in leveraged positions. The sudden fall triggered panic among traders and fueled speculation that large trading firms were preparing legal action against the exchange.
Gaevoy responded on X, calling the circulating claims “complete bullshit.” He said Wintermute never intended to sue Binance and had no reason to take legal steps in the future. The rumor came from an account named WhalePump Reborn. It is alleged that Wintermute sought compensation for losses linked to Binance’s auto-deleveraging mechanism, which the exchange quickly denied.
Zhao Warns Against Crypto Misinformation After Flash Crash
Former Binance CEO Changpeng Zhao also reacted to the issue. He urged his followers to trust official statements and avoid relying on unverified social media sources. Zhao criticized those spreading misinformation for creating unnecessary fear and damaging confidence in the market. His comment added further support to Gaevoy’s denial.
The flash crash began shortly after Donald Trump announced 100% tariffs on Chinese imports. The statement sparked a global selloff and hit the crypto market instantly. Within minutes, Bitcoin fell from $121,560 to $102,900. Other major tokens followed the same pattern. Binance’s trading systems faced high traffic, and some users reported slow order responses.
Binance confirmed that it used $188 million from its insurance fund to manage volatility. The exchange also refunded $283 million due to oracle-related issues, but excluded losses from auto-deleveraging events. Gaevoy’s earlier comment about being “ADL’d at ridiculous prices” may have led to the misunderstanding. However, he made no mention of any legal plans.
Data from blockchain trackers showed Wintermute’s portfolio fell 12% from $637 million to $572 million after the crash. There were no signs of forced liquidations or large withdrawals from the firm’s wallets. Analysts noted a 1,000 BTC inflow worth about $61 million on October 4, likely related to internal movement and not connected to the market event.
Related: Trump Announces New 100% Tariff Plan Against China
Crypto Prices Fall as Bitcoin Momentum Weakens After Crash
Despite clarifications from both parties, the market continued to fall. Global crypto capitalization dropped 3.97% to $3.45 trillion. Within a single day, $1.36 billion in leveraged positions were liquidated.
According to sources, October became Bitcoin’s first losing month since 2018. The token closed 5% lower despite briefly touching a record high of $126,000 earlier in the month. The downturn came after Federal Reserve Chair Jerome Powell dismissed expectations for continued rate cuts. A U.S. government shutdown also delayed key data releases.
Market analyst Scott Melker described Bitcoin’s rebound as “a structural miracle.” He said the event exposed weaknesses in exchange systems but did not mark the beginning of a bear market. Melker explained that the liquidations were mechanical, driven by infrastructure pressure rather than investor emotion.
Futures data now indicate a 67% chance of a 25-basis-point rate cut in December, down from 94% the previous week. November may bring recovery, as Bitcoin historically performs well during the month. Average returns for November exceed 40% based on past data.
The Wintermute and Binance incident shows that rumors and structural stress can quickly disrupt markets. It demonstrates the fragility of sentiment when misinformation spreads during volatility. The event highlights the need for verified information and clear communication in the fast-paced world of cryptocurrency trading.
