The world's largest crypto exchange lost about $6.3 billion in a hack — and the event has already escalated into a public spat between Elon Musk and Binance's leadership. While the exchange promises to cover all losses from its own funds, the SpaceX founder opted for an ironic comment, to which Changpeng Zhao (CZ) responded with cold arithmetic and a reminder of a billion-dollar investment.
Hackers linked to North Korea withdrew about $6.3 billion from Binance. Around $3 billion was frozen, and withdrawals have been suspended. The exchange states it will fully compensate users for the damage from its own reserves.
CZ's arithmetic: a $2 billion shortfall
Changpeng Zhao responded to Musk's mockery with a maximally specific calculation:
"Roughly: $6.x billion hack, $3 billion frozen, $1.x billion in the SAFU reserve fund. The hole is about $2 billion; in SPCX alone we have $1.x billion. The remaining gap (still painful, but) is coverable."
SAFU is Binance's emergency insurance reserve, which holds about $1.17 billion in bitcoin. This fund has historically served as a safety cushion for users in crisis situations.
A stake in SpaceX worth more than a billion
CZ's position in SpaceX shares traces back to a $500 million bet on Elon Musk's acquisition of Twitter in 2022. Later, X absorbed xAI, and SpaceX bought out xAI in February. In June, SpaceX shares began trading on Nasdaq at $135 per share.
Early investors are still subject to a phased lock-up on sales. The final general tranche opens on December 8, while major shareholders will remain locked up until 2027. Which group Binance belongs to is not disclosed.
The SPCX price fell nearly 10% over the week to October 28 — exactly when 1.6 billion new shares became available for sale.
"Now is not the time for trolling"
Musk first wrote: "Now it's a zero-day vulnerability every day," commenting on the leak of information about the hack, and then left a fire and laughing-face emoji under CZ's warning about the risks of clicking email links.
CZ replied: "Elon, I respect you very much, but now is not the time for trolling. Please stop. Our SPCX shares (we invested $500 million in the Twitter purchase) are now worth more than a billion. It would be great to get some support from you. Thank you!"
Yi He also commented on the situation: "Reporting to the main shareholder: our company's annual income allows us to cover the losses, so for now we don't need to sell the SpaceX shares you admire so much."
Binance promises to resume withdrawals within 48 hours and then conduct a new public proof of reserves.
Cryptalist analysis: The incident demonstrates that even the largest market players are vulnerable to coordinated attacks, and Binance's ability to cover the shortfall through SAFU and external assets is becoming a key factor for trust. A public proof of reserves within 48 hours is a critical test of transparency, and the market's reaction to its results will determine the short-term dynamics of trust in centralized exchanges.