Summary Points
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Rumors Denied: Wintermute’s CEO, Evgeny Gaevoy, confirmed the firm never intended to sue Binance, dismissing ongoing speculation as “baseless.”
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Massive Liquidation Event: The October 10 liquidation resulted in the largest 24-hour loss in crypto history, prompting extensive debate on market-making practices.
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Compensation and Support: Binance disclosed $283 million in reimbursements and a $400 million recovery initiative for affected users, though Wintermute has not confirmed receiving any compensation.
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Speculation on Profits: Unverified claims suggested that Binance and Wintermute profited jointly from the liquidation, but both companies have not acknowledged any legal conflict or wrongdoing.
Wintermute CEO Calls Binance Lawsuit Claims ‘Baseless Rumor’
Wintermute CEO Evgeny Gaevoy has categorically dismissed rumors of a lawsuit against Binance. Last week, Gaevoy took to X, asserting that Wintermute never intended to take legal action. He emphasized that the firm’s position has remained unchanged since the significant liquidation event on October 10.
Reports of a potential lawsuit arose after social media accounts speculated that Wintermute sought reimbursement tied to Binance’s Auto-Deleveraging (ADL) mechanism. Gaevoy responded directly to these claims, labeling them as “baseless rumors.”
The October incident marked the largest 24-hour liquidation in cryptocurrency history, stirring discussions about the role of major market makers like Wintermute. Following this, Binance announced financial measures totaling $683 million, aimed at compensating users and institutional partners. However, Wintermute has not confirmed receiving any compensation.
Despite ongoing speculation, both firms have refrained from acknowledging any legal conflict. Binance has previously stated that extreme market conditions drove the ADL triggers, denying any execution errors or special treatment. In a recent tweet, Binance founder CZ encouraged followers to disregard misleading narratives.
Interestingly, another theory suggested that Wintermute and Binance collaborated to profit from the liquidation. This allegation, lacking public evidence, claimed that Wintermute received significant asset transfers from Binance prior to the market downturn. However, Gaevoy characterized these assertions as unfounded.
As the cryptocurrency landscape evolves, clarity and transparency remain critical. Stakeholders in the market need accurate information to navigate the complexities of trading and investment. Gaevoy’s firm stance against speculation underscores the importance of relying on verified facts rather than rumors.
Wintermute continues to operate confidently in the dynamic crypto market, focusing on innovation and liquidity, regardless of the surrounding chatter. The developments highlight the significance of effective communication within the rapidly changing technological landscape.
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