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, like a particularly stubborn ghost haunting a blockchain séance.
What’s next for the crypto market?
Some, like DeFiance’s CEO, believe more transparency is needed to prevent similar mishaps in the future-or at least to stop looking like a drunken sailor playing with dynamite.
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, a debacle that would make even the most seasoned trader question their life choices.
In an X (formerly Twitter) post, the firm’s CEO, Evgeny Gaevoy, dismissed the rumors with the gravitas of a man who has seen too many HODLers cry in chatrooms, adding that the firm was solvent and didn’t blow during the crash-though one might argue “solvent” is a relative term in this circus.
“We never had plans to sue Binance, nor see any reason to do it in the future,” he declared, as if reciting a soliloquy to a rapt, yet bewildered audience of crypto enthusiasts and caffeine-fueled analysts.
Gaevoy also denied claims that the firm reached out to other market makers to build the case against Binance, a plot twist that would’ve made Shakespeare weep into his ale.
Wintermute was widely rumored to have been severely impacted by the flash crash, which reportedly escalated due to depegging on the Binance exchange-a digital equivalent of a horse falling through a stage floor during a pantomime.
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? Perhaps it’s just Binance’s way of saying, “Sorry, we’ll buy you a coffee… and a new liver.”
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-a masterclass in corporate jujitsu.
At that time, Mr. Changpeng Zhao (CZ), the Founder of Binance, also dismissed those criticizing the repayments, adding that they “protect users.” One wonders if “protect” means “shield from our own incompetence” or “prepare for a legal reckoning.”
The latest claims of Wintermute’s planned Binance lawsuit were first posted by a pseudonymous user, Whale Pump, whose real name is likely “Bob” and whose credibility is about as solid as a house built on a crypto airdrop. 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,” he proclaimed, sounding less like a whistleblower and more like a villain from a Dostoevsky novel who also sells NFTs.
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,” he said, with the wisdom of a man who probably owns a whale but refuses to admit it.
Calls for transparency rise
Some funds have called for greater transparency and for Binance to accept legal liability for the crash-because nothing says “trust” like a $700 million apology check and a side of existential dread.
Arthur Cheung, CEO of DeFiance Capital, noted that the 10th of October case could be a defining moment for the sector, or at least a particularly cringey episode of “Crypto Court with Judge Dredd.”
“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,” he said, with the optimism of a man who’s never traded on a Monday.
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-a time when hope was a volatile asset and coffee was the only stablecoin left.
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2025-11-04 14:49