The cryptocurrency market has been hit by another wave of red candles, plunging 4.1% in the last 24 hours. Bitcoin, Ethereum and Dogecoin all suffered notable declines, along with all large market cap cryptocurrencies fall below support levels that held last week.
The downturn accelerated after allegations surfaced on X suggesting Wintermute, one of the industry’s largest market makers, was preparing to sue Binance over alleged issues related to the crash of October 10.
Rumors of Binance Lawsuit Add to Anxiety
Market unease grew after X rumors surfaced claiming that Wintermute, one of the industry’s leading market makers, was preparing to sue Binance for losses suffered during the October 10 crash. Speculation began when a user known as WhalePump Reborn claimed that Wintermute had lost hundreds of millions and was preparing a lawsuit, calling the situation “not going to be pretty.”
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This was followed by another detailed post from a popular X account known as StarPlatinum, who responded to rumors that Wintermute was filing a lawsuit against Binance for what it claimed were unfair executions of ADL during the mass liquidation event in early October.
As noted in the article, Binance’s system overload during the crash led to automatic deleveraging (ADL) at extreme price levels, causing an estimate $19-20 billion in liquidations in just 24 hours, the largest single-day wipeout in crypto history.
Notably, Wintermute’s portfolio across Ethereum, Arbitrum, and Solana fell by approximately $65 million after the crash, although no on-chain models indicate forced liquidations or large withdrawals. Binance, for its part, acknowledged system overloads at the time, but denied any preferential treatment or technical flaws that could have led to unfair losses.
Wintermute founder denies lawsuit allegations
As panic gripped the market, Wintermute founder Evgeny Gaevoy, taken from completely dispel the rumors. Citing an earlier article from October 11, Gaevoy reiterated that Wintermute never planned to sue Binance and saw no reason to do so in the future.
“We never had any intention of suing Binance, nor any reason to do so in the future,” Gaevoy said on He also called the claims circulating complete bullshit. in direct response to WhalePump Reborn’s post.
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Wintermute rumors are among various factors that are driving down the price of cryptocurrencies. Another factor could be Fed Chairman Jerome Powell. suggesting that the central bank may not make further rate cuts in the near future. Outflows from spot Bitcoin ETFs added to the selling pressure. According to data from Farside InvestorsSpot Bitcoin ETFs began November with releases on Monday, bringing the trend to four consecutive days of releases.
At the time of writing, Bitcoin is trading at $104,502, down 2.8% over the past 24 hours. Ethereum is trading at $3,490, down 6.0% in 24 hours. Dogecoin is trading at $0.1618, down 6.8% in 24 hours.
Featured image created with Dall.E, chart from Tradingview.com
