Binance has drained half the bitcoin from the emergency fund it built to protect users. The exchange’s publicly disclosed SAFU (Secure Asset Fund for Users) bitcoin wallet now holds just above 7,500 BTC — worth roughly $580 million — after four transactions on October 31, according to mempool.space data reported by CoinDesk.
Binance logo (Credits: CoinDesk)
The wallet held 15,000 BTC in February, when Binance finished converting its roughly $1 billion SAFU fund from stablecoins into bitcoin. At about $77,000 a coin, the remaining bitcoin is worth about $580 million.
Why Binance Tapped Its SAFU Fund
Binance confirmed a transfer of 7,499 bitcoin on Saturday, October 31, linking it to a partial deployment of SAFU. The move is part of the coverage effort for the $6.3 billion hack on October 29 — described as the largest crypto theft in history — which the FBI attributed to North Korea’s TraderTraitor group.
The exchange is using its corporate treasury, the SAFU fund and part of its futures insurance fund to cover the losses. On Sunday, Binance said it had replenished approximately 95% of the affected assets, up from 90% the day before, and that it continued buying the remaining, less-liquid tokens through market and over-the-counter transactions.
Binance SAFU Refill: No Timeline Given
Here’s the wrinkle, per CoinDesk: Binance’s SAFU policy says the fund is rebalanced back to $1 billion if its value falls below $800 million due to BTC price fluctuations — but that rule doesn’t cover the fund actually being spent. The policy sets no deadline for replenishing funds withdrawn after a security incident, and Binance has not given a timeline for restoring it.
Meanwhile, Binance said users can now verify their balances against its Saturday proof-of-reserves snapshot, which showed customer holdings in 10 cryptocurrencies — including Bitcoin, Ether and USDT — backed at least 1:1. Another snapshot covering more tokens is planned for Wednesday.
Also Read: Binance $6.3 Billion Hack: Why Crypto Exchange Theft Is Harder to Stop Than a Bank Robbery
Also Read: Bitcoin Eases to $77,900 as Binance Customers Pull $3.6 Billion After Withdrawals Reopen
Source: CoinDesk — read the full story there.
