Wintermute Denies Binance Lawsuit Plans Amid Market Maker Rumors

Core Insights - Wintermute founder Evgeny Gaevoy has denied rumors of a lawsuit against Binance regarding losses from the October crypto crash, stating that "literally nothing changed" since previous clarifications [1] - The speculation arose after significant losses during the October 10-11 flash crash, which liquidated $19 billion in positions and erased $600 billion from the crypto market cap [2] - Former Binance CEO Changpeng Zhao supported Gaevoy's denial, urging followers to disregard any misleading information [3] Market Impact - The October crash was triggered by President Donald Trump's announcement of 100% tariffs on Chinese imports, causing panic in global markets [3] - Bitcoin's price fell to $104,782, while Ethereum and major altcoins experienced losses between 15% and 20% [3] - Binance's trading infrastructure faced significant issues, including API failures and rejected orders during peak volatility [4] Financial Implications - Binance utilized $188 million from its insurance fund and issued $283 million in refunds for oracle-related depegs, excluding compensation for Auto-Deleveraging (ADL) losses [4] - Wintermute's portfolio saw a 12% decline, dropping from $637 million to $572 million, following the crash [5] Market Structure Analysis - The October event highlighted structural vulnerabilities in crypto derivatives markets, where notional liquidation figures significantly overstate actual capital losses [7]