The FBI and the U.S. Secret Service have launched a comprehensive investigation into a colossal theft amounting to $6.3 billion from Binance wallets. This probe has ignited a public dispute on social media between Elon Musk and Binance founder Changpeng Zhao, which escalated following Musk’s derisive comment toward the exchange amidst the ongoing crisis.
Social Media Debate Escalates
Tensions flared when a social media post compared Zhao’s reassurances about compensating for the losses to a statement made by Sam Bankman-Fried just before the collapse of FTX. Musk responded with a grimacing emoji, sparking rapid criticism of Binance. The exchange’s founder, Zhao, addressed Musk directly, stating,
I have immense respect for you, but this is an inappropriate moment for mockery. Your support would be appreciated.
Zhao further retaliated by referencing Binance’s $500 million financial backing during Musk’s acquisition of Twitter in 2022, which has reportedly grown to exceed $1 billion in SpaceX shares.
SpaceX Shares Highlight Binance’s Financial Strategy
Amid the controversy, Zhao disclosed details about Binance’s financial resilience. Out of the stolen $6.3 billion, approximately $3 billion has been frozen swiftly by stablecoin issuers. The remaining gap is partially covered by Binance’s SAFU emergency fund, leaving a net shortfall of around $2 billion. Zhao noted that roughly half of this can be offset by their SpaceX shareholding, underscoring his point by stating,
The deficit stands at $2 billion, with our SPCX position valued over $1 billion; the remaining loss, while painful, remains manageable.
He once more requested Musk’s support in the matter.
Adding to the dialogue, Binance’s co-CEO Yi He asserted that the company’s annual revenue sufficiently covers any losses, negating the necessity to liquidate SpaceX stocks. This was perceived as an indirect retort to Musk’s stance.
Resumption of Withdrawals on the Horizon
Zhao later indicated that by sharing information on their stake in SpaceX, Binance aims to demonstrate its operational stability to reassure users. Elon Musk has yet to respond publicly to the series of revelations by Binance’s leadership.
Following the completion of internal audits, Binance plans to resume withdrawal services within 45 to 48 hours. Reflecting on the initial $500 million investment four years ago, it has now become a crucial asset for Binance, bolstering confidence against market turmoil.
