On April 1st, the crypto group was caught off guard as a sequence of altcoins, together with ACT, KAVA, DF… plummeted by practically 50%.
What was the frequent thread amongst these tokens? All of those tokens had been related to the identical market maker: Wintermute. This shortly led to hypothesis inside the group that Wintermute had dumped its total holdings, triggering sharp declines and widespread panic.
Nonetheless, Wintermute’s CEO promptly responded, firmly denying the allegations and dismissing them as unfounded rumors.
A troublesome yr for Wintermute
In early 2025 – as many altcoins hit new all-time lows (ATLs), Wintermute as soon as once more discovered itself beneath scrutiny for allegedly triggering sharp market volatility. In accordance with knowledge from Arkham, between January 27 and 28, Wintermute acquired over $100 million from Binance – a sum important sufficient to shake the market throughout that interval.
Nonetheless, Evgeny Gaevoy, CEO of Wintermute, clarified that each one transactions between Binance and Wintermute had been solely for market-making and liquidity provision functions.
What Wintermute does thread
It’s been exceptionally “enjoyable” on twitter previous few days with some accounts hitting new lows when it comes to market construction understanding. I’ve written a number of occasions up to now about what we do and the way we favor to do issues, however perhaps it’s time for…
— wishfulcynic (@EvgenyGaevoy) February 3, 2025
Because the market started to stabilize, Wintermute as soon as once more grew to become the scapegoat for a serious crash involving 9 tokens listed on Binance. In accordance with knowledge from Arkham, Wintermute withdrew liquidity from a number of AMMs, triggering value drops of greater than 60% for tokens together with ACT, DEXE, KAVA, DF, HIPPO, BANANAS31, LUMIA, TST, and QUICK.
Different altcoins had been additionally affected, with some posting losses nearing 40%.

A number of altcoins crashed. Supply: X
Nonetheless, echoing occasions from earlier within the yr, CEO Evgeny Gaevoy denied any accusations of rug pulls or mass dumping. He clarified that Wintermute’s actions had been purely associated to arbitrage buying and selling.
We’re merely partaking in AMM arbitrage. Actually, we’re additionally questioning what’s happening available in the market,” Gaevoy stated.
In response to the backlash, Wintermute reportedly started shopping for again ACT and a number of other of the affected tokens.
Binance: As the brand new market villain
Binance’s sudden coverage shift sparks market turmoil
If Wintermute had no intention of dumping tokens, the group started to ask a extra urgent query: Who was really behind the crash?
Some speculated that Binance might have “not directly” triggered the steep decline in a number of altcoins. At 2 PM (GMT) on April 1, the change abruptly introduced adjustments to leverage and margin necessities for sure tokens. For open positions, Binance routinely utilized the brand new phrases.
Learn extra: There Will probably be Extra BNB Chain Token Listed on Binance
The transfer led to a wave of pressured liquidations, pushing many merchants into the crimson and sending altcoin costs into freefall. The influence wasn’t restricted to derivatives markets; the sell-off shortly spilled over to identify markets, contributing to a broader market downturn.
The suddenness of the change raised issues throughout the group. Many argued that Binance’s actions had been too abrupt, leaving merchants with little time to regulate. Some now surprise: may related occasions unfold once more?
Binance responds, however doubts stay
In response, Binance co-founder Yi He acknowledged that the staff is gathering proof and can difficulty an official clarification quickly. She additionally hinted that sure well-known figures within the crypto area could also be deliberately damaging Binance’s popularity by spreading destructive narratives.
Nonetheless, the difficulty stays unresolved. Many buyers argue that Binance’s current actions have had a disproportionately destructive influence in the marketplace, leaving positions worse off than only a day prior.
Learn extra: Recap of the Worth Manipulation in Hyperliquid