Binance Hack Sparks a War of Words Between Elon Musk and CZ

Elon Musk chose irony to react to the Binance hack, which resulted in estimated losses of $6.36 billion. But Changpeng Zhao (CZ) did not appreciate the joke. The founder of Binance responded by recalling a rather embarrassing financial detail for his critic: the $500 million invested by Binance in the acquisition of Twitter in 2022 is now worth more than $1 billion in SpaceX shares.

From Elon Musk’s Mockery to CZ’s Sharp Reply

The Binance hack has become one of the most discussed topics on X. Amid worries, criticism, and positions taken, everyone has their say. And some do not hesitate to joke about the situation. 

A meme notably compares CZ’s statements to those of Sam Bankman-Fried before the fall of FTX. A particularly biting parallel when one remembers that the former FTX boss, sentenced to 25 years in prison, had also repeatedly given reassuring speeches before his platform’s bankruptcy. 

Elon Musk does not miss the opportunity. He reacts with an embarrassed emoji, then posts during the night: “Every day brings a new flaw.” A remark that mocks the repeated security incidents. He also adds a flame and a laughing face under a CZ warning about received links.

This time, the Binance boss decides to respond directly:

“Elon, I have a lot of respect for you, but this is really not the time to make fun. Please stop.“

CZ Pulls Out an Argument Worth Over a Billion

But Changpeng Zhao does not stop at this request. He chooses to remind Elon Musk that Binance also has some financial cards to play.

In 2022, the platform invested $500 million in the billionaire’s acquisition of Twitter. Yet, this investment is now worth more than $1 billion in SpaceX shares.

CZ relies on this valuation to put losses still to be covered into perspective: “ About $2 billion remains to be covered. Our investment in SpaceX alone already represents over a billion. The remaining amount is painful but remains manageable. “

Yi He, co-founder of Binance, drives the point home in an equally ironic tone. She reminds that the platform’s annual revenues are sufficient to absorb the losses and specifies that Binance has no intention of selling its SpaceX shares.

In short, Musk wanted to remind Binance of its security problems. CZ rather reminded him that his company holds a stake in one of his companies. The sense of humor evidently depends on which side of the screen one is on.

Can Binance Still Reassure Its Users?

Behind this quarrel on X, Binance primarily has to manage the consequences of the hack. According to estimates, between $2.7 and $3 billion have been frozen, while about $2.4 billion remain out of reach.

The platform promises a new proof of reserves and intends to cover losses with its SAFU fund and its own funds. Withdrawals remain suspended, with a resumption announced within 48 hours. Deposits, however, continue to operate.

One important question remains: how does Binance plan to restore its users’ trust? A proof of reserves published after a hack does not reassure as much as a document available before the incident. It presents the assets held but does not necessarily reveal all off-chain commitments.

The expected technical report should provide more details on the circumstances of the hack. But for Binance, the urgency is also to restore withdrawals and reassure its clients. Bitget managed to overcome this stage after a theft of $388 million. Binance will now have to prove it can do the same, despite the scale of the losses.