Wintermute Bags $3M Profit in Just Hours Amid FDUSD Depeg Chaos

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Crypto market maker Wintermute seized a lucrative arbitrage opportunity after the First Digital US Dollar-pegged stablecoin (FDUSD) briefly lost its peg, plummeting to $0.87 on April 2.

Also read: Understanding the Basics of Crypto Market Making

The depegging followed public allegations from Tron founder Justin Sun, who claimed that First Digital—the issuer of FDUSD—was insolvent. First Digital promptly denied the allegations, asserting that its stablecoin remained fully backed and solvent.

Wintermute’s Strategic Maneuver

Wintermute, known for its high-frequency trading operations, acted swiftly to capitalize on the price dislocation.

According to blockchain intelligence platform Lookonchain, Wintermute transferred over 75 million FDUSD tokens back to First Digital shortly after the stablecoin’s value slipped below its $1 peg.

Since $FDUSD depegged, #Wintermute has transferred 75M $FDUSD to First Digital Labs.

They likely bought $FDUSD at a discount during the depeg and redeemed it 1:1 through First Digital—making a solid profit.https://t.co/6WZdfs65vk https://t.co/vyLDgzbynX pic.twitter.com/91Pg6GcKAN
— Lookonchain (@lookonchain) April 3, 2025

The firm likely purchased FDUSD at discounted rates, potentially around $0.87 to $0.90, and redeemed the tokens at face value, locking in an estimated $3 million profit once FDUSD regained its peg.

Blockchain data also shows that Wintermute acquired over 31 million FDUSD tokens from Binance during the depegging episode, further supporting claims of their arbitrage strategy.

Also read: Wintermute Moves to Wall Street: CEO Gaevoy Eyes Crypto Growth in the U.S.

The FDUSD Depeg Incident

The depegging was triggered by Justin Sun’s insolvency accusations against First Digital, which caused panic selling and temporarily pushed FDUSD’s value as low as $0.87. First Digital responded on April 3, reassuring users that FDUSD was fully backed and redeemable 1:1 with the US dollar. “FDUSD remains fully backed and solvent,” the firm stated in an X post, denouncing Sun’s claims as “baseless.”

Market Volatility and Broader Implications

The incident unfolded against a backdrop of heightened crypto market volatility, partly attributed to traditional finance (TradFi) events.

Also read: Stablecoin Boom: 53% Surge in Active Wallets Signals Massive Adoption

Wintermute founder Evgeny Gaevoy noted that recent crypto market downturns in 2025 have been heavily influenced by external factors such as the DeepSeek crisis and new tariff policies introduced by U.S. President Donald Trump.

a. Macro. Before you look at another dumb martyparty post about Wintermute transferring SOL across exchanges (which is very normal and is literally how spot exchanges operate when there is arb between them), I’d recommend zooming out and looking at: BTC price and ES/NQ futures on…
— wishfulcynic (@EvgenyGaevoy) February 3, 2025

Wintermute’s actions have renewed scrutiny of the role of market makers in volatile conditions—especially their ability to profit from sharp price movements and liquidity gaps.

Also read: The Stablecoin Shake-Up: Fidelity Enters the Arena

Stablecoin Stability Concerns

Despite First Digital’s assurances, concerns over FDUSD’s long-term stability persist. In March, S&P Global Ratings gave FDUSD a “constrained” stability rating of 4 out of 5, citing weaknesses in areas like governance, transparency, liquidity, and regulatory oversight.

First Digital stands firm: Justin Sun’s baseless accusations won’t distract from Techteryx’s own failures— our stablecoin FDUSD remains fully backed and solvent.

Read our official statement. pic.twitter.com/FndxX1mCCg
— First Digital (@FirstDigitalHQ) April 3, 2025

The FDUSD depegging episode shows how sudden market events and unverified claims can create lucrative opportunities for agile players like Wintermute.

Author

Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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