Binance confirmed that total losses from the exchange hack reached $6.3 billion, updating an initial estimate previously reported at $5.8 billion. Amid news of the massive fund breach, an open feud erupted on X between Binance founder Changpeng Zhao (CZ) and Elon Musk.
The dispute began when Musk replied to an old cybersecurity advisory post by CZ. The owner of X attached a laughing emoji alongside the cynical comment, ‘Everyday is Zeroday’, in response to news of the crypto exchange hack. Musk’s post prompted an immediate public reaction from CZ.
CZ responded to the tweet with an open message urging Musk to show restraint. “Elon, I respect you a lot, but this is a terrible time to make fun. Please stop,” CZ wrote in reply to Musk’s post. The crypto exchange founder asked Musk to show sympathy and moral support for an industry weathering a security crisis.
However, the social media back-and-forth quickly shifted to a more pressing question: how Binance plans to cover the shortfall in customer funds.
Calculating Binance’s Shortfall
To demonstrate the exchange’s financial resilience to the public, CZ disclosed Binance’s investment portfolio in SpaceX. The equity holding in the rocket company originated from a $500 million investment made when Binance assisted Musk in financing his acquisition of Twitter. According to CZ, Binance’s stake in SpaceX is now valued at over $1 billion.
CZ estimated that the remaining shortfall the company needs to cover is around $2 billion. That cash deficit is viewed as manageable internally by the exchange without having to sell its SpaceX holdings on the market.
A similar statement was issued by Binance Co-CEO Yi He to calm customer concerns. Yi He emphasized that Binance’s annual revenue is more than enough to cover all customer fund losses. Since operating cash flow is sufficient, management confirmed that liquidating investment assets will not be necessary.
Offers of Support from Competitors
Beyond the spat between CZ and Musk, leadership at rival exchanges took a different stance. Coinbase CEO Brian Armstrong responded to the hacking crisis by offering direct technical assistance to the Binance team. Armstrong urged crypto industry participants to put business rivalries aside and stand united against cybersecurity threats.
For customers and the crypto community, the contrasting reactions from these figures highlight a clear divide in times of crisis: while some chose to turn the security breach into a punchline, others focused on covering losses and offering technical support.
Source: crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
