Musk and CZ trade jabs over SpaceX shares as the Binance hack turns political
After Elon Musk appeared to mock the hack, Binance founder Changpeng Zhao noted that Binance's Twitter stake is now worth over $1 billion in SpaceX shares.
The Binance hack has spilled into social media rivalry and election-season politics.
What happened
Elon Musk appeared to mock Binance over its $6.3 billion hack. Changpeng Zhao, the exchange’s founder, responded by reminding Musk that Binance invested $500 million to back his takeover of Twitter, and that the stake is now worth more than $1 billion in SpaceX shares.
Separately, some political and administration figures in the United States tried to use the heist to score points ahead of the elections.
Background
Binance was one of the outside investors that helped fund Musk’s $44 billion purchase of Twitter, now called X, in 2022. Through later deals between Musk’s companies, that original stake is now counted in SpaceX shares.
Changpeng Zhao, widely known as CZ, stepped down as Binance’s chief executive in 2023 after pleading guilty in the US to failing to maintain an effective anti-money-laundering programme. He remains a prominent voice in the industry.
Why it matters
The exchange may be light-hearted, but it shows how closely crypto is now tied to big tech and politics. A stake taken to support a social network has turned into a large holding in one of the world’s most valuable private companies.
The political reaction matters more. The hack lands days before US midterm elections, as lawmakers debate how to regulate crypto exchanges. How politicians frame it could influence what rules come next.
Written by Tech Security with AI assistance. Not financial advice. See our disclaimer.