Crypto market maker Wintermute has rejected claims that it is preparing legal action against Binance [BNB] following the October 10 flash crash.
In a post on X, CEO Evgeny Gaevoy said the firm is financially sound and was not wiped out during the event. He also dismissed reports suggesting Wintermute had contacted other market makers to form a case against Binance.
The company had been rumored to have suffered major losses during the crash, which was reportedly triggered by a brief depegging incident on Binance.
To ease the fallout, Binance paid over 700 million dollars to affected users. However, some questioned the move, asking whether it reflected guilt or genuine goodwill.
Binance Blames Glitch and Market Factors as Lawsuit Rumors Spread
Binance described the October 10 flash crash as the result of an internal glitch but also pointed to wider market conditions, citing the China-U.S. tariff update as a contributing factor.
At the time, Binance founder Changpeng Zhao (CZ) defended the platform’s decision to repay affected users, saying the move was meant to protect them rather than admit fault.
Rumors about Wintermute planning legal action against Binance first surfaced from a pseudonymous account known as Whale Pump, who claimed the market maker had suffered losses in the hundreds of millions and was preparing a lawsuit.
Meanwhile, several funds have urged Binance to show more transparency and take legal responsibility for the incident. Arthur Cheung, CEO of DeFiance Capital, said the October 10 crash could become a defining case for the crypto industry.
