Benzinga | Nov 23, 2021 11:20AM EST

'Sounds Shady': Elon Musk Takes Aim At Binance Over Treatment Of Dogecoin Customers

Tesla Inc (NASDAQ:TSLA) CEO Elon Musk called out Binance CEO Changpeng Zhao ("CZ") on Twitter Inc (NYSE:TWTR) for the alleged mistreatment of Dogecoin (CRYPTO: DOGE) customers on the crypto exchange.

What Happened: Musk commented on a CoinDesk report featuring the Binance CEO's comments, tagging CZ and stating that whatever is going on with Binance's DOGE customers "sounds shady."

Hey @cz_binance, what's going on with your Doge customers? Sounds shady.

-- Elon Musk (@elonmusk) November 23, 2021

Musk was presumably referring to a Nov. 11 mishap when Binance froze Dogecoin withdrawals after users reported being asked to return coins they did not actually have.

Although Binance did not put out an official statement, an account from Dogecoin developers suggested Binance mistakenly sent out a few million dollars worth of re-processed withdrawals from last year.

6) Currently what we believe has happened is the previously stuck transactions have been retried automatically, as would happen on each node restart after upgrade -- and went through, since now the minfee is lower....

-- Dogecoin Developers (@dogecoin_devs) November 11, 2021

Some market participants believed a bulk of DOGE's negative price action may have been caused by Binance's error.

If you've withdrawn $DOGE from your Binance account to another wallet, go check that wallet. You may have received free tokens from Binance's OOPSIE.$DOGE had a more significant dump recently, I expect it could be because of this.

Multiple cases have confirmed this oopsie. pic.twitter.com/sErsBtx1nZ

-- wolf (@ImNotTheWolf) November 11, 2021

Data compiled by users show the amount Binance lost totaled $152 million worth of DOGE.

DOGE Price Action: Dogecoin was trading at $0.2311, gaining about 3.26% in the past 24 hours, Tuesday morning at publication.

Photo by Executium on Unsplash