Binance has spent half its SAFU bitcoin, about $580 million worth, data shows
Binance, the world's largest cryptocurrency exchange by trading volume, has depleted approximately half of its Secure Asset Fund for Users (SAFU), with on-chain data revealing roughly $580 million worth of Bitcoin has been spent from the reserve. The fund, originally established to protect users in the event of extreme financial losses, has seen significant drawdowns according to blockchain analytics tracking the exchange's wallets.
SAFU was created by Binance in 2018 following a high-profile security breach, with the exchange committing to allocate 10% of all trading fees to build and maintain the reserve. Binance publicly pledged to keep the fund valued at a minimum of $1 billion, a threshold intended to reassure users about the platform's financial resilience and ability to cover potential losses from unforeseen events.
The reduction in SAFU holdings raises questions about user fund protection at a time when crypto exchanges continue to face heightened regulatory scrutiny globally. Industry observers note that declining reserve levels could affect user confidence, particularly given the broader sector's sensitivity following the 2022 collapse of FTX, which exposed significant gaps in exchange reserve practices.
Analysts and market participants will be watching closely for an official response from Binance explaining the nature of the withdrawals and whether the exchange intends to replenish the fund to its stated minimum threshold in the near term.
Source: CoinDesk
