Binance co-founder Changpeng Zhao, widely known as CZ, publicly addressed Elon Musk on Friday, following Musk’s response to the recent $6.4 billion hack that targeted the world’s largest cryptocurrency exchange. CZ reminded Musk that Binance holds SpaceX shares valued at more than $1 billion, and asked him to refrain from making light of the situation during a challenging period for the exchange.
Exchange’s reserves and Musk’s reaction
After reports emerged that a substantial portion of the stolen funds had been frozen, estimates suggested Binance could still face losses nearing $1 billion. With Binance reportedly holding about $144 billion in assets under custody, the exchange emphasised its financial strength.
Elon Musk reacted to the loss estimate with a grimacing emoji on X, drawing parallels from some users between the Binance incident and the collapse of FTX, where former CEO Sam Bankman-Fried had similarly claimed that his platform could cover any losses shortly before its downfall. Musk did not provide further comment on his post.
Elon, have a lot of respect for you, but bad time to troll. Please stop. Our SPCX shares (from our $500 million investment in your Twitter takeover) are worth more than a billion. Would appreciate if you show a little support. Thanks!
CZ clarified that he did not intend to imply that Binance would sell its SpaceX shares, but rather sought to highlight the level of reserves the company holds to reassure observers about its financial position.
Leadership weighs in on recovery plans
Yi He, Binance co-CEO and a key figure in the company’s management, also addressed the issue. She stated that Binance’s annual revenue would cover the losses from the attack, making it unnecessary to liquidate its SpaceX holdings. She emphasized that the exchange’s strong financials allow it to absorb the loss without destabilizing its operations.
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 reiterated his message, stating he did not hint at any sale of the SpaceX shares. Instead, he hoped to assure Musk and the public that Binance remains in a solid financial position despite the security incident.
Hack details and recovery efforts
The cyberattack, carried out on October 29, resulted in the theft of at least $6.4 billion in cryptocurrency from Binance-linked wallets across several blockchains. Initial assessments showed $5.57 billion in assets moved from wallets on Ethereum, Bitcoin, and Tron. One transaction alone saw more than $1.6 billion in USDT transferred to a newly created Ethereum address.
A significant weakness revealed by the incident is that assets such as Ethereum, lacking a central issuer, cannot be frozen in the aftermath of a hack. This contrasts with stablecoins like USDT and USDC, where Tether and Circle managed to freeze approximately $2.39 billion connected to the attackers, impeding some of the theft’s impact.
The perpetrators exploited decentralized platforms including Uniswap and Aave, enabling them to exchange and borrow cryptocurrencies without intermediary approvals. According to tracking efforts, tens of thousands of ETH, including 19,762 ETH borrowed against roughly $60 million in USDT, were funneled through these channels.
Mini dictionary: Uniswap is a decentralized exchange protocol enabling peer-to-peer trading of cryptocurrencies directly from wallets, and Aave is a decentralized lending platform allowing users to borrow or lend various cryptocurrencies without centralized intermediaries.
Attribution and next steps
Blockchain analytics firms TRM Labs and Chainalysis attributed the attack to TraderTraitor, a North Korea-linked group previously connected to the $1.5 billion Bybit incident earlier in 2025. Chainalysis valued the Binance theft at an estimated $6.4 billion.
Binance announced it has reserved more than $6.34 billion in company funds to offset losses, including $5 billion already held in the same types of tokens stolen. The exchange is acquiring the remainder through market and over-the-counter purchases, a process it described as time-consuming for less liquid tokens.
| Asset or Fund | Value Reserved | Purpose |
|---|---|---|
| Binance company reserves | $6.34 billion | To cover theft losses |
| Tokens already held | $5 billion | Immediate replacement |
| Additional acquisitions | Over $1.34 billion | Market and OTC sources |
