Elon Musk chose irony to react to the Binance hack, which resulted in losses estimated at $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 detractor: the $500 million invested by Binance in the buyout of Twitter in 2022 is now worth more than a billion dollars in SpaceX shares.
In brief
- Elon Musk reacted with a mocking emoji to a meme comparing CZ to Sam Bankman-Fried before the FTX bankruptcy.
- CZ asked him to put an end to the provocations, before recalling the valuation of Binance’s investment in SpaceX.
- This skirmish also highlights Binance’s financial reserves, while the platform still needs to reassure its users after the hack.
From Elon Musk’s mockery to CZ’s curt response
The Binance hack has become one of the most commented topics on X. Between concerns, criticisms and positions, everyone has their own comment. 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 piquant parallel when we remember that the former boss of FTX, sentenced to 25 years in prison, had also made many reassuring speeches before the bankruptcy of his platform.
Elon Musk is not letting the opportunity pass. He reacts with an embarrassed emoji, then publishes during the night: “Every day brings a new flaw”. A remark that makes fun of repeated security incidents. It also adds a flame and a laughing face under a warning from CZ regarding the links received.
This time, the boss of Binance decides to respond directly:
“ Elon, I have a lot of respect for you, but now is really not the time to make fun of you. Please stop. »
CZ releases an argument for more than 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 buyout of Twitter. However, this investment is now worth more than a billion dollars in SpaceX shares.
CZ relies on this valuation to put the losses still to be covered into perspective: “ There is about $2 billion left to cover. Our investment in SpaceX alone already represents more than a billion. The remaining amount is still painful, but still manageable. »
Yi He, co-founder of Binance, drives the point home in an equally ironic tone. She recalls that the platform’s annual revenues are sufficient to absorb losses and specifies that Binance has no intention of selling its SpaceX shares.
In short, Musk wanted to remind Binance of its security concerns. Instead, CZ reminded him that his company has a stake in one of his companies. The sense of humor obviously depends on which side of the screen you are on.
Can Binance still reassure its users?
Behind this quarrel over X, Binance must above all manage the consequences of the hack. Estimates suggest that between $2.7 billion and $3 billion have been frozen, while around $2.4 billion remains out of reach.
The platform promises new proof of reserves and intends to cover losses thanks to its SAFU fund and its own funds. Withdrawals, however, remain suspended, with a resumption announced within 48 hours. The deposits continue to operate.
An important question remains: how does Binance intend to restore the trust of its users? Proof of reservations published after a hack does not reassure as much as a document available before the incident. It shows 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 customers. Bitget had managed to reach this milestone after a theft of $388 million. Binance will now have to show that it can do the same, despite the scale of the losses.
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