The cryptocurrency market has been hit by a new wave of red candles, down 4.1% in the past 24 hours. Bitcoin, Ethereum and Dogecoin have all seen notable declines, with all cryptocurrencies having large market caps fall below the support level that held last week.
The downturn accelerated after claims on until the October 10 crash.
Rumors of a lawsuit against Binance are increasing fears
Market turmoil intensified after rumors circulated on The speculation started when a user known as WhalePump Reborn claimed Wintermute had lost hundreds of millions and was preparing legal action, describing the situation as ‘not pretty’.
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This was followed by another detailed post from a popular X account known as StarPlatinum, in which the rumors were addressed Wintermute took legal action against Binance for what it called unfair ADL executions during its massive liquidation event in early October.
As noted in the post, Binance’s system overload during the crash led to automatic deleveraging (ADL) at extreme prices. which makes it estimated $19 billion to $20 billion in liquidations in just 24 hours, the largest single-day wipeout in crypto history.
Notably, Wintermute’s portfolio in Ethereum, Arbitrum, and Solana fell by about $65 million after the crash, although no on-chain pattern indicated forced liquidations or large withdrawals. For its part, Binance had acknowledged the system overload at the time, but denied any preferential treatment or technical error that could have led to unfair losses.
Wintermute founder refutes lawsuit claims
As panic spread across the market, Wintermute founder Evgeny Gaevoy decided took to X to dispel the rumors completely. Citing an earlier post from October 11, Gaevoy reiterated that Wintermute never intended to sue Binance and saw no reason to do so in the future.
“We have never had any plans to sue Binance, nor do we see any reason to do so in the future,” Gaevoy said on He also described the circulating claims as complete nonsense in direct response to the WhalePump Reborn post.
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The Wintermute rumors are part of several factors that are causing the price of cryptocurrencies to crash. Another factor could be Fed Chairman Jerome Powell indicate that The central bank may not implement further interest rate cuts anytime soon. Adding to the selling pressure was the outflow from spot Bitcoin ETFs. According to data from Farside InvestorsSpot Bitcoin ETFs started November with outflows on Monday, bringing the trend to four consecutive days of outflows.
At the time of writing, Bitcoin is trading at $104,502, down 2.8% in the past 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