Binance, the world’s largest cryptocurrency exchange, is contending with a record-breaking $6.3 billion security breach. The incident has sparked a public exchange between Binance co-founder Changpeng Zhao (CZ) and Tesla and SpaceX CEO Elon Musk, after Musk made multiple comments on social media about the breach.
Public exchange between CZ and Musk
As the scale of the hack emerged, Musk, who also owns the social media platform X, posted a grimacing emoji in response to news surrounding Binance’s losses. This prompted CZ to issue a direct response, urging Musk to stop with the public trolling and to show support during the crisis.
CZ reminded Musk of Binance’s $500 million investment in Musk’s 2022 $44 billion acquisition of Twitter, noting that this stake has since doubled to over $1 billion. In his social media post, CZ stated, “Elon, have a lot of respect for you, but bad time to troll. Please stop. Our SPCX shares (from our $500m investment in your Twitter takeover) are worth more than a billion. Would appreciate if you show a little support. Thanks!”
Elon, have a lot of respect for you, but bad time to troll. Please stop. Our SPCX shares (from our $500m investment in your Twitter takeover) are worth more than a billion. Would appreciate if you show a little support. Thanks!
Musk’s posts also referenced earlier security advice from CZ, to which Zhao replied that most hacks involve a compromised device or algorithm, emphasizing the complexity of the situation. CZ clarified that he was not planning to sell Binance’s SpaceX shares but pointed out their value as something Musk “might know” about in order to reduce concerns.
Yi He, Binance co-founder, joined the conversation publicly by tagging both CZ and Musk, saying that the company’s revenues were sufficient to cover the losses and that they did not need to sell the SpaceX shares Musk favored.
Reporting to the major shareholder: Our company’s revenue for the year is sufficient to cover the losses, so we do not yet need to sell the SpaceX shares you are bullish on.
CZ and Musk have a history of occasional public disputes, including a 2021 episode when Musk called Dogecoin withdrawal issues at Binance “shady,” to which CZ responded by referencing a Tesla vehicle recall. In December 2024, Musk responded with a brief “Thanks!” after CZ highlighted Binance’s contribution to Musk’s Twitter acquisition.
Binance is one of the largest players in the cryptocurrency industry, with a global user base and a wide range of trading services.
Mini dictionary: Yi He is the co-founder of Binance and heads several strategic initiatives, often serving as a public spokesperson for the exchange in times of major developments.
Details of the Binance hack
The security incident reportedly began on Thursday and resulted in $6.3 billion in losses, marking it as the largest hack in the cryptocurrency sector to date. Initially, Binance attributed the breach to a compromised laptop belonging to a DevOps engineer, which allowed unauthorized withdrawals through a breached service container.
Subsequent investigations by Binance revealed additional vulnerabilities and a more elaborate attack process. CEO Richard Teng reported that the attacker did not simply exploit one engineer’s permissions, and the breach involved multiple steps. The company stated that no wallet private keys were leaked and that there is no evidence pointing to an individual as responsible.
To mitigate further damage, Binance has frozen roughly $3 billion in stolen assets on-chain. The company assured its users that losses will be covered through its SAFU emergency fund and corporate reserves. Deposits are now open again, while withdrawals are expected to resume within 45 hours.
| Event | Details |
|---|---|
| Total loss from hack | $6.3 billion |
| Amount frozen on-chain | $3 billion |
| Expected time to reopen withdrawals | 45 hours |
| Binance’s investment in Musk’s Twitter deal (2022) | $500 million (now >$1 billion) |
