Changpeng Zhao, the founder and former CEO of Binance, confirmed that the crypto exchange invested $500 million in Elon Musk’s acquisition of Twitter, now rebranded as X. CZ framed the investment as a move to support free speech and explore blockchain integration with social media.

The investment, which was part of the $44 billion takeover deal completed in October 2022, made Binance one of roughly 18 equity investors who collectively contributed over $7 billion in equity financing.

Inside the deal

CZ confirmed the investment on October 28, 2022, noting that the wire transfer had gone through two days prior.

The logic, at least on paper, was twofold. First, there was the ideological angle: Binance positioned itself as backing Musk’s stated mission to make Twitter a haven for free expression. Second, there was the strategic play: CZ openly discussed the possibility of weaving Web3 and blockchain technology into Twitter’s infrastructure.

What happened next: not much

Since the initial investment was confirmed in late 2022, there have been no publicly reported new developments, additional investments, or concrete blockchain integrations tied to the deal.

Meanwhile, Binance itself went through a turbulent period. CZ stepped down as CEO in November 2023 after pleading guilty to violations of the Bank Secrecy Act as part of a settlement with US authorities. The exchange paid $4.3 billion in fines and penalties. Richard Teng took over as CEO.

What this means for investors

A $500 million equity stake in a $44 billion deal gives Binance roughly a 1.1% ownership position.

The bear case is equally clear. Two and a half years have passed with no tangible blockchain integration to show for it. The investment was made during a period of peak crypto exuberance, right before the FTX collapse sent shockwaves through the industry. The leadership at Binance has changed.