CryptoSlate
During Binance’s Oct. 30 hack crisis, co-founder Changpeng Zhao asked Elon Musk to stop trolling and show support, citing SpaceX shares he valued at more than $1 billion. Zhao linked the holding to a $500 million investment in Musk’s Twitter takeover. Fellow co-founder Yi He said annual revenue could cover the losses, so Binance did not yet need to sell the shares.
Binance separately said it had reserved more than $6 billion in company funds for the incident. Of that amount, $5 billion was already held in the exact token assets affected; the company said it was purchasing the remainder through market and over-the-counter channels. It noted that low liquidity and OTC settlement could slow those purchases.
Why it matters
The figures represent different kinds of financial support, not one pool of immediately available cash. Zhao’s estimated SpaceX share value is an equity valuation, while Yi He’s reference to annual revenue does not establish how much cash is available at a given moment. Binance’s stated reserve and token purchases are more directly tied to replacing affected assets.
The company also reported $3 billion in frozen assets, but said recovery and verification were still ongoing. Those assets should not be treated as recovered funds or added to the reserve as though they were already available.
Market impact
For affected users and crypto markets, the key test is Binance’s progress in obtaining the tokens needed to address shortfalls. The company said the purchases would match the affected assets, but low-liquidity tokens and settlement delays could extend the process. The estimated SpaceX stake offers context for Binance’s resources, not proof that it has been sold or converted into funds for recovery.
Frequently asked questions
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How much did Binance say it reserved for the hack incident?
Binance said it reserved more than $6 billion in company funds to cover the incident.
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How much of Binance’s reserve was already held in affected tokens?
Binance said $5 billion was already held in the exact token assets affected. It was purchasing the remainder through market and OTC channels.
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Why might Binance’s token purchases take longer?
Binance said some affected tokens had low liquidity and that OTC settlement could take time.
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Were the $3 billion in frozen assets already recovered?
No. Binance said the assets remained subject to ongoing recovery and verification.
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Did Binance say it would sell its SpaceX shares to cover losses?
No. Yi He said annual revenue was sufficient to cover losses, so Binance did not yet need to sell the shares. CZ valued the claimed holding at more than $1 billion.
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