Wintermute founder Evgeny Gaevoy refutes claims that the market maker has plans to sue Binance after the losses incurred during the Oct. 11 market crash.
Summary
- Wintermute CEO Evgeny Gaevoy denied rumors that his firm plans to sue Binance over the Oct. 11 crypto market crash, stressing that the company remains “perfectly fine.”
- While Gaevoy confirmed Wintermute experienced unusual liquidations during the $19 billion market crash, he has not disclosed the extent of losses, and it remains unclear whether Binance compensated the firm.
In a recent post shared on Nov. 4, the platform’s chief executive officer and founder Evgeny Gaevoy responded to the rumors circulating online that his firm plans to sue Binance after suffering losses during the mass $19 billion crypto market crash on Oct. 11.
Quoting an old post he shared in the aftermath of the mass crypto liquidations, he said that circumstances have remained the same since he uploaded the post, stating that Wintermute is “perfectly fine, business as usual” in his old post.
“We never had plans to sue Binance, nor see any reason to do it in future,” said Gaevoy in his latest post.
Earlier that day, an account with 14,000 followers called WhalePump Reborn started the discourse with a thread claiming that the market maker is planning to sue the major crypto exchange after losing “hundreds of millions.”
The account marked “commentary account” also said that the situation is “going to be bad” if Binance founder Changpeng Zhao does not come up with a way to compensate the market makers that have lost funds during the market crash. The account went as far as to liken the situation to the FTX incident.
Gaevoy also commented on the thread, denying all claims made by the account and calling it a “larp.” It is possible that the Wintermute founder is stating that the account is only faking it and trying to stir up drama.
In a separate post, WhalePump Reborn questioned Gaevoy on whether he signed an NDA with the crypto exchange after asking for compensation. The account also accused the Wintermute exec of bringing together other market makers to support the firm in its alleged lawsuit.
Gaevoy denied both claims lodged by the account.
How much did Wintermute lose in the Oct. 11 market crash?
At press time, the CEO of Wintermute has not disclosed a specific amount of losses incurred by the platform following the crypto market crash on Oct. 11. Though he did admit in a podcast hosted by The Block that some of Wintermute’s liquidated positions were unusual and happened at “completely ridiculous” prices.
As previously reported by crypto.news, Wu Blockchain alleged that the crypto market crash which took place on Oct. 11 was suspected to be a coordinated exploit that took advantage of a loophole in Binance’s Unified Account margin system to trigger mass liquidations across the exchange. This is because the timing coincided with the exchange’s oracle price adjustment window, which provided attackers with an opportunity.
In the aftermath of the crash, Binance paid out $283 million to traders after the crash led to extreme depegging for USDE (USDE), wBETH and BnSOL. The 24-hour spot trading volume for the affected assets resulted in realized losses ranging between $500 million to $1 billion.
The exchange also compensated users through a $400 million initiative, which included setting aside $100 million for low-interest loans targeting institutional users so that they could “restart” trading.
It is unclear whether Binance ever compensated Wintermute due to the market crash, however the platform is known as the exchange’s largest liquidity provider. On-chain data shows that the market maker moved $700 million onto Binance prior to the crash.
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