Statement from Wintermute CEO Regarding Binance

The crypto market experienced a major crash on October 10, causing serious panic among investors. During this process, a series of leveraged positions were liquidated for more than $20 billion. There has been curiosity about whether major market makers would be negatively affected by this decline.

In this context, Wintermute CEO Evgeny Gaevoy firmly denied allegations that the company would sue the Binance exchange. Responding to rumors circulating on social media platforms, Gaevoy stated, “Nothing has changed since that tweet; we have never had any plans to sue Binance and we will not in the future.”

Gaevoy noted that the crash in October occurred at a time when leveraged trading had reached record levels. An X user claimed that Wintermute was affected by Binance's Auto-Deleveraging (ADL) mechanism and requested compensation for losses. However, Gaevoy described this claim as “utter nonsense.” The CEO pointed out that some liquidations occurred at “completely irrational prices.”

Meanwhile, following the incident, Binance created a total compensation fund of $400 million after price disruptions in assets such as USDe, BNSOL, and WBETH. A portion of $100 million of this fund was allocated as low-interest loans for institutional users to restore liquidity. It remains uncertain whether Wintermute benefited from this compensation program.

It is known that Wintermute transferred approximately $700 million to Binance before the crash, and subsequently withdrew a similar amount. This situation stands out as an important point of interest for investors.