CZ and Yi He Call Out Elon Musk Over $1B SpaceX Stake After $6.3B Binance Hack

Following a massive $6.3 billion North Korea-linked exploit at Binance on October 29, founder Changpeng "CZ" Zhao and co-CEO Yi He publicly called out SpaceX CEO Elon Musk for trolling the exchange on X, highlighting Binance's $1-plus billion position in SpaceX stock (SPCX). The comments came as Binance works to recover from the largest security breach in crypto history, which initially triggered widespread market volatility where crypto liquidations hit $628 million in a single hour. ## Managing the $2 Billion Shortfall Breakdown Out of the $6.3 billion stolen during the Binance hot wallets exploit, approximately $3 billion was frozen by security partners and authorities. CZ explained that Binance's Secure Asset Fund for Users (SAFU)—which holds about $1.17 billion in Bitcoin—leaves the unrecovered deficit at roughly $2 billion. Musk posted "Everyday is Zeroday" alongside fire and laughing emojis on October 30, 2026 beneath CZ's email security advisory. CZ responded: "Elon, have a lot of respect for you, but bad time to troll. Please stop. Our SPCX shares (from our $500m investment in your Twitter takeover) are worth more than a billion. Would appreciate if you show a little support. Thanks!" ## SpaceX Holdings and Financial Recovery Binance's $500 million investment in Musk's 2022 Twitter acquisition was subsequently absorbed into xAI, which SpaceX acquired in February prior to its Nasdaq listing in June at $135 per share. Although SPCX fell almost 10% in the week leading up to October 28 as 1.6 billion unlocked shares entered circulation, Binance co-CEO Yi He confirmed that selling equity will not be necessary. She stated that Binance's annual company revenue is fully sufficient to cover the loss. Exchange withdrawals are scheduled to resume within 48 hours, accompanied by a public reserve count. ## Key Takeaways - Exploit Scale: $6.3 billion stolen on October 29, offset by $3 billion frozen assets and $1.17 billion in SAFU Bitcoin reserves. - SpaceX Value: Binance holds over $1 billion in SPCX stock stemming from a $500 million Twitter takeover commitment. - No Asset Sale: Co-CEO Yi He verified that exchange operating revenue will absorb the net $2 billion gap without selling SpaceX equity. ## Why It Matters Binance's capability to absorb a $2 billion net security loss using its internal revenues and balance sheet demonstrates substantial capital reserves compared to collapsed exchanges of the past. However, the public dispute between CZ and Musk underscores the financial cross-exposure between major tech firms and crypto platforms. Traders will closely monitor the market impact when withdrawals reopen and Binance publishes its updated proof-of-reserves.