Changpeng Zhao, the former CEO of Binance, stated that Binance holds shares in SpaceX owned by Elon Musk, which are currently valued at over $1 billion and could be used to compensate for losses incurred in a hacking incident. The assets affected by this hacking incident are estimated to be around $6.3 billion.
However, He Yi, co-founder of Binance, stated that the exchange may not need to sell these shares, as its annual revenue is sufficient to cover the remaining shortfall.
CZ Reveals that Binance Holds More than $1 Billion in Shares of SpaceX
This discussion began with CZ responding to a post by Musk. Previously, there were reports that Binance had sufficient funds to cover the losses of the exchange, after which Musk posted a smiling emoji.
Subsequently, CZ requested support from Musk and pointed out that Binance's investment in their company has now exceeded $1 billion.
CZ indicates that Binance previously invested $500 million in the transaction to acquire Twitter from Musk, obtaining company shares that are now worth over $1 billion. These shares are now associated with SpaceX ( SPCX ).
When a user named X questioned how this investment would help cover the hacker's losses, CZ provided a rough breakdown of how the remaining funds would be allocated.
Freezing funds and SAFU to mitigate Anbin's losses
In this regard, CZ shared his rough calculations, indicating how much of the stolen funds has been recovered or frozen. He stated that currently, about $3 billion in assets have been frozen.
Tether has frozen over $1.56 billion in USDT, Circle has frozen over $800 million in USDC, Ripple has also helped to freeze approximately $200 million, and World Liberty Financial has frozen about $27 million.
Binance can also utilize $1 billion from the SAFU fund to cover the losses. After deducting the frozen funds and the SAFU reserves, it is estimated that there is still about $2 billion remaining that has not been covered by CZ.
To explain how Binance addresses this gap, CZ stated that the value of shares held by only SpaceX exceeds $1 billion. Therefore, although the remaining gap is still concerning, it is now under control.
He Yicheng claims that Binance does not need to sell any SpaceX shares.
However, the remarks of CZ caught the attention of He Yi, co-founder of Binance. She stated that the exchange's annual revenue is already sufficient to cover the remaining losses.
Report to the major shareholders: Our company's revenue this year is sufficient to cover the losses, so there is no need to sell the shares of SpaceX that you are optimistic about for now.
She added that at this stage, Binance does not need to sell any shares of SpaceX.
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