Binance Founder CZ Denies Threatening Elon Musk Over $1 Billion SpaceX Stake

Summary

• Binance founder Changpeng Zhao denied threatening Elon Musk, explaining that mentioning the SpaceX investment demonstrated financial strength amid FTX comparisons.
• Binance co-CEO Yi He maintained that annual revenue could cover the reported $6.3 billion hack losses without selling SpaceX shares.
• Zhao urged Musk to support efforts against suspected North Korean hackers while reaffirming respect for the billionaire technology entrepreneur publicly.

Binance co-founder Changpeng Zhao has denied threatening Elon Musk with a SpaceX share sale amid tensions surrounding the exchange’s $6.3 billion hack. The clarification followed speculation that Binance could liquidate its investment to cover losses from the major security breach.

According to CZ’s October 31 post on X, mentioning the SpaceX investment was never intended as a warning to Musk. Instead, Zhao explained that the disclosure aimed to counter comparisons between Binance and collapsed cryptocurrency exchange FTX.

The Binance founder maintained that the company holds substantial financial resources beyond its cryptocurrency reserves. Zhao also dismissed suggestions that the exchange intended to use its SpaceX investment to pressure Musk.

“I don’t make threats,” Zhao wrote.

Additionally, CZ described SpaceX as one of the best long-term investments and praised Musk’s achievements in technology. Zhao emphasized that Binance’s holdings represent only a small portion of SpaceX’s overall value.

CZ Explains $1 Billion SpaceX Investment Amid Binance Hack Dispute

The disagreement emerged following Musk’s public reaction to the reported $6.3 billion security breach at Binance. Musk posted “Everyday is Zeroday” and responded with laughing emojis during conversations surrounding the incident.

Some comments also referenced FTX’s previous assurances about customer funds before the cryptocurrency exchange collapsed in November 2022. CZ subsequently challenged Musk’s reaction, arguing that Binance needed support rather than criticism during its recovery efforts.

During the exchange, Changpeng Zhao disclosed that Binance’s $500 million investment during Musk’s Twitter acquisition had grown beyond $1 billion. CZ also urged Musk to recognize the seriousness of the security incident affecting Binance and its customers.

The disclosure subsequently raised speculation that Binance might sell its SpaceX holdings to address financial losses from the attack. Zhao rejected that interpretation, explaining that the investment reference demonstrated Binance’s available financial resources rather than plans to liquidate shares.

Binance Leadership Addresses Financial Recovery and SpaceX Share Sale Concerns

Meanwhile, Binance co-CEO Yi He addressed concerns surrounding the company’s ability to compensate affected customers without selling its investments. Yi He maintained that Binance generates sufficient annual revenue to cover the reported losses from the security breach.

The executive also confirmed that Binance did not currently need to sell its SpaceX shares to meet financial obligations. Separately, CZ outlined calculations involving frozen assets, Binance’s Secure Asset Fund for Users, and the remaining funding requirements.

Those calculations included the SpaceX investment among Binance’s available non-crypto assets, rather than identifying it as a planned sale.

CZ Calls for Action Against North Korean Hackers

Zhao also redirected the disagreement toward the attackers, urging Musk to prioritize efforts against the suspected North Korean hackers. The Binance founder emphasized respect for Musk while distancing the exchange from claims of a potential confrontation over SpaceX shares.

Furthermore, CZ maintained that Binance’s investment remains a valuable long-term holding despite the financial pressure surrounding the security incident. The clarification leaves Binance’s SpaceX investment outside any announced asset sale plans, despite speculation surrounding the exchange’s recovery strategy.

Binance’s leadership maintains that the company has sufficient financial resources to address the breach without liquidating its SpaceX holdings.