Wintermute Denies Legal Action Against Binance Amid Post-Crash Dispute
Speculation surrounding a potential lawsuit between Binance and market maker Wintermute sent waves through the crypto community this week - but both sides have now firmly denied any such dispute.
Key Takeaways:
- Wintermute CEO Evgeny Gaevoy denied reports of legal action against Binance.
- Rumors of coordinated lawsuits circulated following October’s market crash.
- Binance founder CZ urged investors to stay calm amid widespread FUD.
- The crypto market remains fragile after the sharp October sell-off.
Rumors Spiral, Wintermute Responds
A fresh round of online speculation has once again tested investor nerves in the aftermath of last month’s historic crypto market collapse. Social media chatter over the weekend suggested that Wintermute — one of the industry’s largest market makers — was preparing to sue Binance following the October 10 flash crash that wiped billions in value from the market.
Evgeny Gaevoy, Wintermute’s outspoken CEO, took to X to shut down the story entirely. “Baseless rumors,” he called them, adding that his company has “no reason” to pursue legal action against Binance, now or in the future.
literally nothing changed since this tweet and we never had plans to sue binance, nor see any reason to do it in future
I should probably ask to make a note of all the people spreading baseless rumors, but most of people believing these have goldfish memory capacity, so I wont https://t.co/0oHShby0Uk
— wishful_cynic (@EvgenyGaevoy) November 3, 2025
Gaevoy dismissed suggestions that Wintermute was collaborating with other trading firms to build a collective legal case, describing the claims as pure fiction. “I should probably make a list of people spreading nonsense,” he joked, “but most of them won’t remember it in a week anyway.”
The Origins of the FUD
The unfounded claims appear to have stemmed from a viral post by an anonymous X user, “WhalePump Reborn,” who alleged that Wintermute had signed a non-disclosure agreement with Binance as part of a compensation deal. The post quickly circulated among traders already rattled by ongoing volatility and whale activity.
While there’s no evidence supporting the claims, they gained traction amid lingering frustration over the October crash — an event blamed on multiple factors including Binance’s margin system glitch, which led to abrupt depegging of assets like USDe, wBETH, and BNSOL. The cascade of liquidations fueled a steep market drop that pushed Bitcoin briefly near $105,000.
Wintermute, which reportedly held over $700 million in Binance wallets before the incident, became a lightning rod for speculation as users searched for culprits behind the market’s most dramatic selloff of the year.
CZ Urges Calm Amid Market Turmoil
Binance founder Changpeng “CZ” Zhao also weighed in, calling for restraint and critical thinking. In an X post responding to the rumors, CZ said the crypto market is in a fragile emotional state, with traders “in pain, jittery, and anxious.” He accused large players of exploiting that anxiety for profit.
“Whales are pouncing on it, spreading more FUD, and cashing in on it,” CZ said, urging users to verify information through official channels rather than social media noise.
The comments come as Bitcoin continues to trade near multi-week lows, reflecting the persistent unease across digital asset markets since the October turmoil. Analysts warn that investor confidence remains fragile, and social media speculation could continue to amplify short-term volatility.
Lingering Aftershocks
While both Binance and Wintermute have now publicly denied any legal tensions, the incident underscores how quickly unverified claims can ripple through the crypto ecosystem — especially in times of uncertainty.
For now, Gaevoy’s remarks appear to have quelled the immediate panic, but the episode serves as a reminder of the industry’s heightened sensitivity to rumor-driven sentiment.
As markets struggle to stabilize, traders seem increasingly aware that in crypto, fear often spreads faster than facts.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
