Wintermute Denies Lawsuit Plans Amid Market Maker Rumors

2025-11-04 09:37:16

Wintermute’s founder and CEO, Evgeny Gaevoy, has categorically denied rumors of any lawsuit over losses from October’s historic crypto crash, dismissing the speculation as “complete nonsense” and stating no legal action was ever considered.

The Rumors and Gaevoy’s Firm Rebuttal

Speculation surfaced on social media alleging Wintermute was gearing up for litigation related to auto-deleveraging (ADL) during the October 10 flash crash, which wiped out over $20 billion in positions and temporarily erased $600 billion from the crypto market cap. Gaevoy countered in a post: “Literally nothing changed since this tweet and we never had plans to sue, nor see any reason to do it in the future.” He called the claims “bullshit,” stressing the firm’s robust risk management and positive relationships in the industry.

The denial gained traction when a prominent crypto figure amplified it, advising followers to unfollow sources spreading misinformation. This followed Gaevoy’s earlier video remarks on ADL at “ridiculous prices” and exploring options, which sparked the initial frenzy.

Crash Scale: $20B liquidated; BTC fell 15.2% below $103,000.
Wintermute Position: No lawsuit; “business as usual.”
Gaevoy Quote: “We continuously evaluate strategic options for growth, but have nothing to announce.”

October Crash: ADL Under Fire

The October 10 plunge, sparked by President Trump’s tariff announcement, triggered panic selling, with Bitcoin dropping 15.2% and altcoins losing 15-20%. ADL mechanisms, meant to manage extreme volatility, faced backlash for execution prices, prompting $283 million in user refunds. Wintermute navigated unusual liquidations but emerged stable, labeling it an “extreme market episode.”

Implications for Market Makers

The episode highlights tensions during volatility, with ADL fairness in focus. Wintermute, a leading liquidity provider, reaffirmed operational strength, viewing the crash as a “one-off.” The swift denial mitigates FUD in the $2.1 trillion market, shifting attention to recovery.

2025 Outlook: $130K-$200K BTC Consensus

Analysts predict Bitcoin at $130K-$200K by year-end. Changelly forecasts $123,849; CoinDCX $131,500. VanEck targets $180K-$200K on ETF momentum. For investors, how to buy Bitcoin via compliant platforms ensures entry. How to sell Bitcoin and how to cash out Bitcoin offer liquidity. Sell Bitcoin for cash and convert Bitcoin to cash enable fiat conversions.

Trading Strategy: Cautious Longs

Short-term: Long BTC above $108,500 targeting $115,000, stop $106,000 (2% risk). Swing: Accumulate dips, staking for 5% APY. Watch sentiment; below $108,000, exit.

In summary, Wintermute’s lawsuit denial quells October crash FUD, bolstering resilience and a bullish 2025 crypto outlook.

BTC-5.71%

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