‘Sounds Shady’—Tesla Billionaire Elon Musk Challenges Binance CEO Over Dogecoin Glitch

‘Sounds Shady’—Tesla Billionaire Elon Musk Challenges Binance CEO Over Dogecoin Glitch

Elon Musk, the Tesla billionaire who has this year adopted the meme-based bitcoin rival dogecoin as something of a pet project, has challenged Binance chief executive Changpeng “CZ” Zhao over the exchange’s ongoing dogecoin withdrawal issues.

Subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and discover hot new NFT and crypto blockbusters poised for 1,000% gains

Dogecoin, which earlier this year rocketed into the crypto top ten by value in part thanks to social media support from the likes of Musk, has added a blistering 6,000% to its value since this time last year.

Earlier this month, Binance, the world’s biggest cryptocurrency exchange by volume, suspended dogecoin withdrawals following an upgrade that users had claimed resulted in dogecoin being erroneously credited to their account.

Sign up now for the free CryptoCodex—A daily newsletter for the crypto-curious. Helping you understand the world of bitcoin and crypto, every weekday

“Hey [CZ] , what’s going on with your doge customers? Sounds shady,” Musk said via Twitter, responding to a Coindesk report about a Financial Times interview in which CZ said he’s aiming to improve the perception of Binance by regulators.

Following the upgrade glitch, Binance said mistakenly sent dogecoin must be returned by the users or they will be unable to withdraw or use funds on their balances. Users have claimed they don’t have the dogecoin in their Binance accounts, according to media reports.

“We discovered a minor issue with doge network withdrawals on Binance after carrying out a version update on 2021-11-10,” Binance said in a blog post almost two weeks ago, with an update adding: “Due to the complex nature of the issue, we expect doge network withdrawals to be suspended for the next 10 to 14 days from 2021-11-15.”

CZ has said he doesn’t “get” dogecoin or other memecoins but wants Binance to be “a marketplace for all the relatively valuable cryptocurrencies in the world.”

“To be honest, I don’t get dogecoin. But this shows the power of decentralization. What I think may or may not matter,” CZ said in an interview with the Associated Press last week. “If a large enough number of people in the community values it because it’s cute because they like the meme, then it has value.”

CryptoCodex—A free, daily newsletter for the crypto-curious

MORE FROM FORBESTesla And Elon Musk Devotee Cathie Wood Issued A Serious Bitcoin And Ethereum Fed Warning-But Held Her Huge $500,000 Price Prediction

In October, Musk called on dogecoin miners—who secure the network in return for freshly-minted coins—to update their software in order to lower dogecoin transaction fees and speed up transactions.

Musk has repeatedly backed dogecoin as an alternative to bitcoin this year despite his electric car company Tesla holding billions of dollars worth of bitcoin. Musk has said he thinks dogecoin could work with ethereum to “beat bitcoin hands down.”