There was a cryptocurrency market hit by another wave red candles, falling 4.1% in the last 24 hours. Bitcoin, Ethereum and Dogecoin saw significant declines, with all cryptocurrencies having gigantic market capitalizations falling below support levels that took place last week.
The crisis gained momentum after claims surfaced on X suggesting that Wintermute, one of the industry’s largest market makers, was preparing to sue Binance over alleged issues related to to the disaster of October 10.
Rumors of a lawsuit against Binance boost anxiety
Market anxiety deepened after rumors spread on Speculation began when a user known as WhalePump Reborn Wintermute claimed he lost hundreds of millions and was preparing legal action, describing the situation as “not very pretty.”
This was followed by another detailed post from a popular X account known as StarPlatinum: who addressed the rumors Wintermute initiated legal action against Binance over what it called unfair ADL executions during a massive liquidation in early October.
As noted in the post, the Binance system overload during the outage led to automatic deleveraging (ADL) at extreme price ranges, causing an estimate $19-20 billion in liquidations in just 24 hours, the largest single-day data loss in cryptocurrency history.
Notably, Wintermute’s portfolio of Ethereum, Arbitrum, and Solana dropped by approximately $65 million after the crash, although no on-chain patterns indicated forced liquidations or gigantic withdrawals. For its part, Binance then admitted to system overload, but denied any preferential treatment or technical glitches that could lead to any unfair losses.
Wintermute’s founder denies the lawsuit’s claims
As panic spread across the market, Wintermute founder Evgeny Gaevoy took to X to completely dispel the rumors. Citing an earlier post from October 11, Gaevoy reiterated that Wintermute never planned to sue Binance and saw no reason to do so in the future.
“We never planned to sue Binance and saw no reason to do so in the future,” Gaevoy said at He also described the claims circulating as complete nonsense in direct response to post WhalePump Reborn.
The Wintermute rumors are part of various factors causing cryptocurrency prices to crash. Another factor may be Fed Chairman Jerome Powell suggesting this the central bank cannot cut interest rates any further in the near future. Outflows from spot Bitcoin ETFs also contributed to the selling pressure. According to data from Farside InvestorsSpot Bitcoin ETFs started November with outflows on Monday, which led to the trend extending to four consecutive days of outflows.
At the time of writing, Bitcoin is trading at $104,502, down 2.8% in the last 24 hours. Ethereum is trading at $3,490, down 6.0% in 24 hours. Dogecoin is trading at $0.1618, down 6.8% in 24 hours.
Featured image created with Dall.E, chart from Tradingview.com
