Wintermute Won’t Sue Binance Post-Crypto Market Collapse

Updated

November 5, 2025

Gambar Wintermute Won’t Sue Binance Post-Crypto Market Collapse

Jakarta, Pintu News – Evgeny Gaevoy, founder and CEO of crypto market-making firm Wintermute, has denied speculations circulating online that his company will sue Binance over losses suffered during the market crash on October 10.

Through a post on X (formerly Twitter), Gaevoy confirmed that there are no plans to take legal action against Binance, either now or in the future. This assertion comes after widespread rumors that Wintermute was affected by Binance’s auto-deleveraging (ADL) mechanism and suffered hundreds of millions of dollars in losses.

Binance Auto-Deleveraging Mechanism

literally nothing changed since this tweet and we never had plans to sue binance, nor see any reason to do it in future

I should probably ask to make a note of all the people spreading baseless rumors, but most of people believing these have goldfish memory capacity, so I wont https://t.co/0oHShby0Uk
— wishful_cynic (@EvgenyGaevoy) November 3, 2025

ADL is a safety mechanism used in leveraged trading to manage systemic risk. When extreme market movements deplete the exchange’s insurance fund, the ADL system automatically closes or reduces profitable trader positions to balance the losses of liquidated accounts. This mechanism aims to maintain market stability and prevent overall losses on the platform.

Also Read: 5 Reasons Why Analysts Think November Could Be the Most Bullish Month for XRP (XRP)

Impact of “Crypto Black Friday”

Massive rumors around Wintermute vs Binance after the October crash 🚨

Here’s what’s happening:

People is now claiming that Wintermute, one of crypto’s largest market makers is preparing to sue Binance

Over unfair ADL executions during the October 10 crash that liquidated… pic.twitter.com/icBd32E0gi
— StarPlatinum (@StarPlatinumSOL) November 3, 2025

The market collapse dubbed “Crypto Black Friday” has wiped out over $19.5 billion of leveraged positions. The trigger was US President Donald Trump’s announcement of 100% tariffs on imports from China. At the center of attention was Binance’s technical failures, where users reported serious platform failures, including frozen accounts, stop-loss terminations and more. In response to the criticism, Binance announced a $400 million “Together” initiative to compensate users.

Wintermute’s Response and Strategy

YES.

Wintermute is suing Binance.

And they are not the only ones that got rekt.

They lost hundreds of millions.

I have all the names of who is about to blow up.

It's not going to be pretty.

Unless CZ finds a way for compensation, this is going to be bad.

For weeks,… https://t.co/OTMmztcyzP
— WhalePump Reborn (@WhalePumpReborn) November 3, 2025

Despite suffering significant losses, Wintermute chose not to take legal action against Binance. The company prefers to focus on improving internal strategies and ensuring the safety of client assets. This decision shows a more mature and long-term oriented approach in the face of crypto market volatility. Wintermute remains committed to providing stable and reliable services to its customers.

Crypto Market Stability and Investor Confidence

what a larp, all complete bullshit
— wishful_cynic (@EvgenyGaevoy) November 3, 2025

The clarification from Wintermute CEO, Evgeny Gaevoy, provides some relief amidst market uncertainty. While crypto markets are often unpredictable and fraught with challenges, quick and transparent responses from industry leaders can help maintain investor confidence. Going forward, it is important for all parties to work together to improve market security and stability.

Also Read: Can You Live Only on Crypto? Here are 3 Sources of Income & Challenges You Need to Know About

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