Wintermute Denies Lawsuit; Binance Launches $400M Support
Wintermute CEO Evgeny Gaevoy has publicly denied rumors that his market-making firm planned a lawsuit against Binance following the October 10 Bitcoin crash. Gaevoy called the Binance lawsuit claims “complete bullshit,” stating Wintermute suffered no verified liquidity losses on the exchange and urging traders to rely on official sources. Binance CEO Changpeng Zhao also dismissed the lawsuit rumors and cautioned against unverified reports. In response to the crash, during which Bitcoin plunged from over $121,000 to below $103,000, Binance launched a $400 million user support program to stabilize markets. Additionally, nonprofit Coin Center filed an amicus brief in the trial of the Peraire-Bueno brothers, challenging the U.S. government’s “honest validator” theory related to Ethereum MEV manipulation. The episode underscores the effects of misinformation and legal scrutiny on crypto liquidity providers.
Neutral
Wintermute’s denial of a Binance lawsuit clears a major source of legal uncertainty, while Binance’s $400 million support program helps stabilize liquidity after the Bitcoin crash. These actions should reduce short-term volatility by dispelling rumors and reassuring traders, but they do not constitute a strong bullish catalyst for BTC’s price. In the longer term, improved clarity and legal certainty may promote steadier trading conditions, resulting in a neutral impact overall.