Key takeaways
Why are the rumors so sure that Wintermute could explode?
The allegations surfaced during the flash crash and have persisted since then.
What’s next for the crypto market?
Some, like the CEO of DeFiance, believe that greater transparency is necessary to avoid similar incidents in the future.
Crypto market maker Wintermute has distanced itself from claims it is preparing a lawsuit against Binance (BNB) following the flash crash of October 10.
In an X (formerly Twitter) jobthe company’s CEO, Evgeny Gaevoy, dismissed the rumors, adding that the company was solvent and did not explode during the crash.
“We never intended to sue Binance, and we see no reason to do so in the future.”
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Gaevoy too denied claims the company contacted other market makers to build the case against Binance.
Wintermute was rumored to have been badly affected by the flash crash, which was made worse due to butchering on the Binance exchange.
To calm the chaos, the exchange paid out over $700 million in restitution to victims. However, some criticized the move and asked, “If you didn’t do it, why refund?” » Is it guilt or true generosity?
CZ ignores lawsuit allegations
For Binance, the situation is due to an “internal problem”; However, he blamed the crash on macroeconomic factors, citing updated Sino-U.S. tariffs.
At that time, Mr. Changpeng Zhao (CZ), the founder of Binance, also rejected those who criticized the refunds, adding that they “protect users”.
The latest allegations regarding Wintermute’s planned Binance lawsuit were first posted by a pseudonymous user, Whale pump. He said the market maker incurred hundreds of millions of dollars in the crash and was ready to take legal action.
“Wintermute is suing Binance. And they’re not the only ones who’ve been slammed…I’ve got all the names of the ones that are about to blow up. It’s not going to be pretty.”
In his typical response, CZ shrugged his shoulders claims, calling them FUD. He added,
“Lots of random FUD in the market. People are hurting, nervous and anxious. Whales are jumping on them, spreading more FUD and taking advantage of it.”
Calls for transparency are increasing
Some funds have called for greater transparency and for Binance to accept legal responsibility for the crash.
Arthur Cheung, CEO of DeFiance Capital, note that the October 10 affair could be a defining moment for the sector.
“The October 10 case could become a landmark test of whether crypto exchanges have a duty of care comparable to traditional markets. Users should not assume they are helpless: legal and reputational dynamics can change quickly once the facts come to light.”
It remains to be seen whether the facts surrounding the accident will ever be revealed. However, after the crash, the market sour at a level comparable to the tariff war of early 2025.
Source: Alternative me
