Crypto News Today: Crypto Exchange Binance Moves 1,315 Bitcoins Into SAFU as $1 Billion BTC Shift Begins

Binance moved about 1,315 Bitcoin into its Secure Asset Fund for Users (SAFU) as it begins a 30-day shift of the user protection reserve toward Bitcoin. Blockchain analytics platform Arkham flagged the transfer as roughly $100 million in BTC.

The exchange later confirmed on X that the movement formed part of its plan to convert $1 billion in SAFU reserves from stablecoins into Bitcoin. Binance said it had completed the first batch of conversions, totaling $100 million in stablecoins.

Binance Moves 1,315 BTC to SAFU in $100M Transfer

Arkham-identified wallet data shows a single transaction moving around 1,315 BTC from a Binance-labeled hot wallet to a known SAFU address early Monday. The transfer moved directly between Binance-linked addresses.

https://x.com/binance/status/2018263663094980734?s=20 

The on-chain flow showed no interaction with external wallets. Consequently, the data points to an internal treasury reclassification rather than a market-facing trade.

Blockchain data also indicates the transaction did not involve stablecoin sales tied to a spot purchase. Instead, Binance allocated the Bitcoin it already held and ring-fenced it as designated user protection capital.

Binance Starts $1B SAFU Shift from Stablecoins to BTC

SAFU is a security fund Binance created in 2018 to protect users from losses tied to unforeseen events, such as hacks or operational failures. The exchange said it would convert $1 billion worth of dollar-pegged tokens into Bitcoin for that reserve over 30 days.

Binance framed the shift as a move toward holding more Bitcoin inside the user protection fund. In addition, the exchange said it would continue acquiring Bitcoin for SAFU and aims to complete the conversion within 30 days of the original announcement.

The company also set a valuation floor for the fund. Binance said it would rebalance the reserve if the SAFU market value falls below $800 million due to BTC price fluctuations.

Bitcoin-backed SAFU adds volatility risk as wallets update

A Bitcoin-backed SAFU fund will fluctuate with the broader crypto market. This structure increases the importance of Binance’s pledge to replenish the reserve during periods of price volatility.

Market participants had expected immediate spot buying linked to the conversion plan. However, Monday’s transfer showed no signs of an external-market trade, based on the direct movement between Binance-linked wallets.

On-chain records also show an operational change shortly before the transfer. The wallet labeled as the Binance SAFU Fund changed authorization at 07:13 UTC and added two new addresses to an approved recipient whitelist.

The transfer came after Bitcoin’s price dropped to around $74,000 over the weekend before rebounding on Monday. Data in the material placed BTC near $76,800 at the time of writing, down about 2.5% over 24 hours.

On the other hand, Binance also pointed to operational efforts tied to user protection and risk controls. The exchange said it had settled 38,648 incorrect deposit recoveries totaling $48 million and had cumulatively recovered over $1 billion.

Additionally, Binance said its risk controls supported 5.4 million users and prevented around $6.69 billion of scam-related losses. The company also said cooperation with global law enforcement led to the seizure of $131 million in illicit funds.

Moreover, Binance aims to complete the SAFU conversion within 30 days of its January 30 announcement and said it will keep acquiring Bitcoin for the fund. 

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