Key Takeaways
Why are rumor mills so sure that Wintermute may blow up?
The claims surfaced during the flash crash and have persisted since then.
What’s next for the crypto market?
Some, like DeFiance’s CEO, believe more transparency is needed to prevent similar mishaps in the future.
Crypto market maker Wintermute has distanced itself from claims that it is preparing a lawsuit against Binance [BNB] following the 10th of October flash crash.
In an X (formerly Twitter) post, the firm’s CEO, Evgeny Gaevoy, dismissed the rumors, adding that the firm was solvent and didn’t blow during the crash.
“We never had plans to sue Binance, nor see any reason to do it in the future.”
Source: X
Gaevoy also denied claims that the firm reached out to other market makers to build the case against Binance.
Wintermute was widely rumored to have been severely impacted by the flash crash, which reportedly escalated due to depegging on the Binance exchange.
To calm the chaos, the exchange dished out over $700 million in repayments to victims. However, some criticized the move and questioned, “If you didn’t do it, why repay?” Is it guilt or genuine generosity?
CZ shrugs off the lawsuit claims
For Binance, the situation occurred due to an “internal glitch”; however, it blamed the crash on macro factors, citing the China-U.S. tariff update.
At that time, Mr. Changpeng Zhao (CZ), the Founder of Binance, also dismissed those criticizing the repayments, adding that they “protect users.”
The latest claims of Wintermute’s planned Binance lawsuit were first posted by a pseudonymous user, Whale Pump. According to him, the market maker incurred hundreds of millions of dollars during the crash and was prepared for a legal remedy.
“Wintermute is suing Binance. And they are not the only ones that got rekt…I have all the names of who is about to blow up. It’s not going to be pretty.”
In his typical response, CZ shrugged off the claims, calling them FUD. He added,
“Lots of random FUD in the market. People are in pain, jittery, and anxious. Whales are pouncing on it, spreading more FUD, and cashing in on it.”
Calls for transparency rise
Some funds have called for greater transparency and for Binance to accept legal liability for the crash.
Arthur Cheung, CEO of DeFiance Capital, noted that the 10th of October case could be a defining moment for the sector.
“The October 10 case could become a landmark test of whether crypto exchanges owe a duty of care comparable to traditional markets. Users shouldn’t assume they’re powerless—legal and reputational dynamics can shift quickly once facts come to light.”
Whether the facts of the crash will ever be revealed remains to be seen. However, post-crash, the market has soured to a level comparable to the early 2025 tariff war.
Source: Alternative Me
