Wintermute CEO Calls Binance Lawsuit Claims ‘Baseless Rumor’
Wintermute CEO Evgeny Gaevoy has publicly denied one of many loudest and most persistent rumors that has been circulating for the reason that October 10 liquidation shock – that the cryptocurrency market-making agency is making ready to sue Binance.
Posting on X this week, Gaevoy reiterated that Wintermute “by no means had plans to sue Binance,” and stated nothing concerning the agency’s place has modified since his statements instantly after the occasion.
Wintermute-Binance Lawsuit Rumor
The denial follows a number of posts from pseudonymous market commentators alleging Wintermute was pursuing reimbursement over losses tied to Binance’s Auto-Deleveraging (ADL) mechanism in the course of the crash. Gaevoy immediately responded to at least one such submit, and the declare was nothing however a “baseless rumor.”
The October occasion, which has been described by buying and selling desks as the biggest 24-hour liquidation in crypto historical past, triggered intensive debate across the position of enormous market makers throughout compelled unwinding moments. Binance later disclosed compensation and assist measures of $283 million in reimbursements, in addition to a $400 million restoration initiative for customers and institutional desks. But Wintermute has not confirmed whether or not it acquired any compensation from the alternate. On October 12, Gaevoy acknowledged publicly that the agency was “completely positive” following the occasion.
While rumors of a possible authorized confrontation continued to achieve traction over the previous week, a separate however extremely viral narrative additionally circulated, which instructed that Binance and Wintermute collectively profited from the liquidation cycle.
Those claims, that are unsupported by public proof, alleged that Binance often transfers massive volumes of property to Wintermute earlier than main sell-offs, and that Wintermute then drives markets decrease to seize the unfold. The claims additionally cited Wintermute’s massive inbound switch to Binance hours earlier than the October 10 worth drop, a element that was reported as routine liquidity rebalancing on the time.
CZ Pushes Back
Despite the depth of hypothesis throughout social platforms, neither Binance nor Wintermute has hinted on the existence of authorized battle or inner breakdown.
Binance has not commented immediately on the Wintermute lawsuit rumor, however the alternate beforehand acknowledged there was no preferential remedy or inner execution error behind the October ADL triggers, and had added that the occasion was pushed by excessive open curiosity that had constructed up within the weeks prior.
The alternate’s founder and former CEO, CZ, nevertheless, tweeted,
“If somebody made you consider in any other case, it’s time to click on unfollow.”
The submit Wintermute CEO Calls Binance Lawsuit Claims ‘Baseless Rumor’ appeared first on CryptoPotato.
