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Wintermute founder Evgeny Gaevoy refutes claims that the market maker has plans to sue Binance after the losses incurred during the Oct. 11 market crash.<\/p>\n
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In a recent post shared on Nov. 4, the platform\u2019s chief executive officer and founder Evgeny Gaevoy responded to the rumors circulating online that his firm plans to sue Binance after suffering losses during the mass $19 billion crypto market crash on Oct. 11.<\/p>\n
Quoting an old post<\/a> he shared in the aftermath of the mass crypto liquidations, he said that circumstances have remained the same since he uploaded the post, stating that Wintermute is \u201cperfectly fine, business as usual\u201d in his old post.<\/p>\n \u201cWe never had plans to sue Binance, nor see any reason to do it in future,\u201d said Gaevoy in his latest post<\/a>.<\/p>\n Earlier that day, an account with 14,000 followers called WhalePump Reborn started the discourse with a thread<\/a> claiming that the market maker is planning to sue the major crypto exchange after losing \u201chundreds of millions.\u201d<\/p>\n The account marked \u201ccommentary account\u201d also said that the situation is \u201cgoing to be bad\u201d if Binance founder Changpeng Zhao does not come up with a way to compensate the market makers that have lost funds during the market crash. The account went as far as to liken the situation to the FTX incident.<\/p>\n <\/p>\n Gaevoy also commented<\/a> on the thread, denying all claims made by the account and calling it a \u201clarp.\u201d It is possible that the Wintermute founder is stating that the account is only faking it and trying to stir up drama.<\/p>\n In a separate post, WhalePump Reborn questioned Gaevoy on whether he signed an NDA with the crypto exchange after asking for compensation. The account also accused the Wintermute exec of bringing together other market makers to support the firm in its alleged lawsuit.<\/p>\n Gaevoy denied<\/a> both claims lodged by the account.<\/p>\n At press time, the CEO of Wintermute has not disclosed a specific amount of losses incurred by the platform following the crypto market crash on Oct. 11. Though he did admit in a podcast<\/a> hosted by The Block that some of Wintermute\u2019s liquidated positions were unusual and happened at \u201ccompletely ridiculous\u201d prices.<\/p>\n As previously reported by crypto.news, Wu Blockchain alleged that the crypto market crash which took place on Oct. 11 was suspected to be a coordinated exploit that took advantage of a loophole in Binance\u2019s Unified Account margin system to trigger mass liquidations across the exchange. This is because the timing coincided with the exchange\u2019s oracle price adjustment window, which provided attackers with an opportunity.<\/p>\n In the aftermath of the crash, Binance paid out $283 million to traders after the crash led to extreme depegging for USDE (USDE), wBETH and BnSOL. The 24-hour spot trading volume for the affected assets resulted in realized losses ranging between $500 million to $1 billion.<\/p>\n The exchange also compensated users through a $400 million initiative, which included setting aside $100 million for low-interest loans targeting institutional users so that they could \u201crestart\u201d trading.<\/p>\nHow much did Wintermute lose in the Oct. 11 market crash?<\/h2>\n