The cryptocurrency market experienced a sharp downturn, triggered by U.S. President Trump’s announcement of 100% tariffs on Chinese imports. This led to over $10 billion in liquidations across the sector within 24 hours, with Bitcoin dropping from around $122,000 to below $110,000 and the total market cap shedding hundreds of billions.
Amid this volatility, unverified rumors began circulating on Telegram channels and X (formerly Twitter) claiming that major market maker Wintermute and exchange Crypto.com had suffered catastrophic losses — often phrased as “blowing up” or facing insolvency/liquidation.
These claims speculated that the firms were dumping assets on exchanges like Binance to cover positions, exacerbating the sell-off. The rumors gained traction quickly on social media, with posts warning users to withdraw funds and speculating on broader contagion.
However, no official downtime, withdrawal halts, or announcements from the firms supported these claims — users reported normal operations throughout.
Both companies swiftly addressed the speculation on October 11, 2025, via X posts and statements, emphasizing operational stability and dismissing the rumors as “baseless FUD” fear, uncertainty, and doubt.
The system is operating perfectly and the FUD is unfounded.” Confirmed no disruptions to withdrawals or transactions. “I’m sorry to disappoint you, but Wintermute is perfectly fine, everything is as usual.” Stressed no collapse during the downturn and normal business operations., Kris noted.
BD/Partnerships Exec Arnaud Arn_Wintermute Responded to liquidation rumors with: “I heard Wintermute got liquidated” – followed by clarification that it’s “unfounded FUD” and false. Expressed confusion over the claims.
These responses were echoed across crypto news outlets, with no evidence emerging to substantiate the rumors. Binance founder CZ also weighed in separately, denying any involvement in “hunting Wintermute” and calling related speculation false.
The sell-off was part of a larger $19B+ liquidation wave, but the rumors appear to have amplified panic without basis. Wintermute’s recent OTC volume growth 313% in 2024 and institutional ties suggest resilience, not vulnerability.
The Binance FUD (Fear, Uncertainty, Doubt) episode in late 2022, triggered by the FTX collapse, exemplifies how rumors of exchange insolvency can cascade through crypto markets.
Sparked on November 6 when Binance CEO CZ announced liquidation of $529M in FTT tokens citing risk management post-Terra/LUNA fallout, it escalated with Binance’s brief takeover intent, abandonment on November 8 after due diligence revealed FTX’s $8B shortfall, and subsequent proof-of-reserves scrutiny on Binance.
Largest since FTX; BUSD bled ~9B tokens. Comparable % outflows hit Crypto.com/OKX, but Binance scrutiny was outsized. -32% from Nov; shorts piled in $118M open interest, but no FTT-like crash — BNB’s utility (e.g., fee discounts) buffered it.
Bank run” narrative, with $300M daily outflows and warnings to “get off exchanges.” Reserves fell just 6% vs. FTX’s 90%, but perception ruled — BNB dipped amid shorts, and BTC tested 2-year lows (~$15,650). Temporary USDC withdrawal halts fueled more doubt; Silvergate bank ties rumored severed.
By Jan 2023, inflows resumed; BTC rallied 50%+ into 2023 bull run. Accelerated CEX transparency (e.g., PoR standards) and DeFi migration; Binance consolidated dominance but faced SEC scrutiny (fined $4B in 2023).
FUD exploits sentiment in speculative markets, causing outsized volatility like 10-15% BTC/ETH drops on rumors alone. Yet, facts (e.g., reserves) prevail; it often signals bottoms for HODLers. Parallels recent Wintermute/Crypto.com rumors — verify via on-chain data/official channels to mitigate.
While the statements calmed immediate nerves, crypto’s history via past Wintermute manipulation allegations in early 2025 means skepticism lingers. No further issues have been reported as of October 12, 2025.
The rumors were unfounded FUD amid a volatile market day, and both firms are operating normally.
