Wintermute CEO Evgeny Gaevoy called rumors that the company is preparing a lawsuit against Binance ‘complete nonsense.’ Claims spread in the community that Wintermute suffered multimillion-dollar losses due to the ADL mechanism during the market crash on October 10.
‘Complete Nonsense’
In a post on X (formerly Twitter), Gaevoy stated clearly:
‘We have never intended to sue Binance and see no reason to do so in the future. I could tag everyone spreading this nonsense, but I think such people have the memory of goldfish.’
He recalled that back on October 11 he wrote that the market crash did not affect Wintermute’s operations in any way, and the company continues to function as usual.
Gaevoy’s statement was a response to a series of viral posts claiming that Binance allegedly ‘bought Wintermute’s silence’ by compensating losses after the ADL mechanism malfunctioned.
What is ADL and Why Does It Matter
The Auto-Deleveraging (ADL) mechanism is used on exchanges to balance risks during periods of extreme volatility. When leveraged liquidations exhaust the exchange’s insurance fund, ADL automatically reduces profitable positions to cover the losses of liquidated accounts.
During the market crash known as ‘Crypto Black Friday,’ this mechanism triggered at peak load, causing mass forced position closures. According to BeInCrypto, over $19.5 billion in leveraged positions were liquidated from the market at that time.
The trigger for the crash was a statement by Donald Trump about imposing 100% tariffs on Chinese imports, which caused a wave of liquidations and a sharp drop in liquidity on major exchanges.
Binance at the Center of Criticism
Users massively complained about frozen accounts, unexecuted stop orders, and interface failures. Subsequently, Binance acknowledged technical problems and announced the launch of the $400 million ‘Together’ initiative to compensate affected traders.
However, this situation became the ground for rumors. In one post, the WhalePump Reborn account stated:
‘Wintermute is suing Binance. And they’re not the only ones who suffered. Losses amount to hundreds of millions. I have the names of everyone who will ‘explode’ soon. If CZ doesn’t find a way to compensate for the losses, it will end badly.’
Later, the same account suggested that Binance had allegedly already reached an agreement with Wintermute, offering ‘an initially tiny, then increased compensation.’
‘I’ve seen the agreements, heard from participants. Binance bought Wintermute’s silence. And retail, as you noted, ended up with nothing,’ the message said.
Wintermute Denies Everything
Gaevoy rejected these claims, emphasizing that the company did not participate in any negotiations and did not conduct arbitration procedures against Binance. He also noted that Wintermute did not suffer losses during the October crash and continues to provide liquidity on leading exchanges.
‘All these speculations are just fiction. Wintermute had no reason for a lawsuit, and Binance made no settlements with us,’ he added.
Context: ‘Black Friday’
On October 10, 2025, the cryptocurrency market experienced its largest drop in recent years. Within hours, Bitcoin fell by 20%, and altcoins lost up to half their value. The event has already been dubbed ‘Black Friday.’
Amid panic and technical failures, Binance found itself in the spotlight, and automatic liquidation mechanisms became the subject of debate about the transparency and risks of centralized platforms.
What’s Next?
After the high-profile incident, industry analysts are calling for a review of ADL rules and increased transparency in futures market settlements.
Wintermute, meanwhile, continues to maintain its position as one of the largest liquidity providers on the market and emphasizes that no rumors affect its partnership with Binance.
Read more: Bitcoin loses $104,000 and risks falling to $92,000. New investors in panic
