.png){kind=logo}
Binance will move its entire $1 billion user protection fund into Bitcoin over the next 30 days. The exchange said it will execute the shift gradually and publish audits during the process.
The announcement comes as Bitcoin trades well below recent highs. Binance also tied the plan to a $800 million value floor that triggers replenishment from company reserves.
The Secure Asset Fund for Users (SAFU) is Binance’s emergency reserve for extreme scenarios, including security incidents. Binance created SAFU in 2018 after a major hack, and it funds the reserve using trading fees.
Binance stores the SAFU fund in cold wallets, which keep assets offline. The fund also sits separately from user balances, which reduces the risk of custody confusion during a crisis.
As of January 2026, the SAFU wallet comprises $1 billion in USDC stablecoin, according to Binance’s open letter dated January 29. Binance said it will convert the full stablecoin balance into bitcoin reserves within 30 days of the announcement.
Binance highlighted Bitcoin as a long-term anchor for user protection and industry resilience. The letter said the decision reflects a belief that BTC serves as the core asset in the crypto ecosystem and represents long-term value.
The exchange said it will monitor the SAFU fund’s market value and rebalance the reserve as needed. Binance stated it will restore the fund to $1 billion if BTC price swings push its value below $800 million.
That framework means the SAFU bitcoin conversion changes the fund’s behavior during sharp market moves. Stablecoins aim to track the U.S. dollar, while Bitcoin can move quickly in either direction.
Binance paired the SAFU fund decision with broader messaging on transparency and cooperation. The exchange cited proof-of-reserves showing approximately $162.8 billion in fully backed user assets across 45 crypto assets.
In addition, Binance reported operational metrics tied to user protection and risk controls. The letter said the exchange completed 38,648 incorrect deposit recoveries totaling $48 million, with cumulative recoveries exceeding $1.09 billion.
Binance also said risk controls supported 5.4 million users and helped prevent about $6.69 billion in scam-related losses. The letter added that cooperation with global law enforcement led to $131 million in illicit funds confiscated.
Meanwhile, the announcement landed amid renewed debate around exchange trust and market structure. Cathie Wood attributed recent market weakness to a Binance-related deleveraging event during a television appearance.
That criticism intensified after references to an October 10 crash and large liquidation headlines. The text says the event involved about $19 billion in forced liquidations, while later estimates placed real trader losses between $950 million and $2.85 billion, citing Sam Seo.
The same account says Binance provided $283 million in compensation to affected users and described the episode as extreme market conditions. It also says some critics focused on technical issues that limited order management during volatility.
Community commentary also included responses from competitors. Star Xu posted that the incident caused lasting industry damage, while avoiding a direct name reference.
Binance executives addressed public remarks as well. The account says co-founder He Yi responded to Wood’s comment and later deleted the message. The report also says founder Changpeng Zhao criticized “twisted FUD” and described Binance as a net hoarder.
Bitcoin traded at $83,909.61 at the time of the provided market snapshot, up 1.27% over 24 hours. Consequently, the SAFU bitcoin conversion will unfold while traders watch BTC’s price path and the $800 million replenishment trigger.
Over the next 30 days, Binance said it will complete the conversion and publish audits along the way. Still, the exchange’s stated rebalancing rule and proof-of-reserves disclosures will likely remain central to how users assess crypto exchange security and custody risk.
Also Read: Crypto News Today: Binance and OKX Face Unverified Poaching Claims After Viral Photo
