Binance co-founder Changpeng Zhao, widely known as CZ, has asked Elon Musk to stop mocking Binance following the crypto exchange’s $6.3 billion hack. Zhao made the appeal on October 30, saying the timing was inappropriate and reminding Musk of Binance’s investment in his Twitter acquisition.
“Bad time to troll. Please stop,” Zhao wrote in a post on X. He also pointed out that Binance’s $500 million investment in Musk’s 2022 Twitter takeover had grown into SpaceX shares worth more than $1 billion, according to his estimate.
The exchange followed Musk’s reaction to the Binance hack, which has triggered concerns about the security of major cryptocurrency platforms and their ability to cover customer losses.
Why CZ Responded to Elon Musk After the Binance Hack
The disagreement began after Binance disclosed its major security incident on October 29. As discussions about the exchange’s ability to absorb the losses spread online, Musk responded to a post about the incident with a grimacing emoji.
He had also reacted to an earlier cybersecurity warning from Zhao with laughing and fire emojis. Musk further posted, “Everyday is Zeroday,” a comment referring to security vulnerabilities that attackers can exploit before developers fix them.
Zhao later addressed Musk directly. Although he said he had respect for the billionaire, he asked him to show support instead of making jokes about the situation.
The Binance co-founder also brought up the exchange’s financial connection to Musk. Binance invested $500 million in Musk’s acquisition of Twitter in 2022. Zhao said the resulting SpaceX shares were now worth more than $1 billion.
Binance Says It Can Cover the $6.3 Billion Hack Losses
The exchange’s security breach has raised questions about whether Binance can absorb the financial impact without selling major investments or disrupting its operations.
Binance has said it will cover all customer losses. It also reported that it had reserved more than $6.34 billion in company funds to address the incident.
However, the amount reserved should not be confused with the value of assets frozen by external partners. Binance and blockchain security firms have reported that approximately $3 billion in affected assets were frozen or restricted.
The company is also working with law enforcement agencies and industry partners to trace the remaining funds and support recovery efforts.
Yi He Says Binance Does Not Need to Sell SpaceX Shares
Binance co-CEO Yi He also responded to the discussion about the exchange’s ability to cover the losses.
She said Binance’s revenue for the year was sufficient to handle the financial impact. Therefore, the company did not need to sell its SpaceX shares at that time.
Her response addressed speculation that Binance might have to liquidate its investment in Musk’s company to fund customer reimbursements.
Zhao later clarified that he had not suggested selling the shares. He said he was simply pointing out financial resources that Musk might recognise, rather than announcing plans to sell the investment.
You may also like : Binance Reports $6.3 Billion Security Breach in Largest Crypto Heist
Binance Hack Raises Questions About Crypto Exchange Security
The public exchange between Zhao and Musk comes as Binance continues to investigate one of the largest reported cryptocurrency security incidents.
The exchange initially identified a possible compromise involving an employee’s device. However, it later described a more complex attack involving additional breach points.
Blockchain intelligence firms, including TRM Labs and Chainalysis, have linked the incident to North Korea-associated hacking group TraderTraitor. Binance has said it found no evidence that attackers exposed wallet private keys.
The incident has renewed concerns about the security of centralised exchanges, particularly their internal systems and transaction approval processes.
For Binance, the immediate priority is to recover affected assets, protect customers and demonstrate that it can manage the financial impact. Meanwhile, the exchange between CZ and Musk has added another layer of public attention to the unfolding incident.
