Binance’s SAFU Fund Sheds Half Its Bitcoin Holdings as $580M Is Deployed

Binance’s SAFU Wallet Holds Just $580M in Bitcoin After Half the Reserve Is Used

Binance’s emergency fund for protecting users has lost approximately half of its Bitcoin holdings, leaving the reserve with just over 7,500 BTC worth roughly $580 million. Although the exchange has committed to restoring the fund to its $1 billion target, it has not announced a timeline.

According to mempool.space data, Binance’s publicly listed Secure Asset Fund for Users (SAFU) wallet, 1BAuq7Vho2CEkVkUxbfU26LhwQjbCmWQkD, contained slightly more than 7,500 BTC on Tuesday. The latest balance reflects four transactions recorded on October 31.

The wallet held approximately 15,000 BTC in February, when Binance completed its conversion of the roughly $1 billion reserve from stablecoins into Bitcoin. At a price of about $77,000 per BTC, the current holdings are valued near $580 million.

SAFU Reserve Below Its Published Rebalancing Level

Binance’s SAFU documentation says the exchange will bring the fund’s value back to $1 billion if it drops below $800 million because of Bitcoin price movements.

However, the guidelines do not explicitly explain whether this rebalancing rule also applies when Binance directly uses the reserve to finance an emergency response.

On October 31, the exchange confirmed that part of the SAFU fund would be deployed toward a $6.34 billion recovery effort following the security breach. Binance said the funding would also come from its corporate treasury and a portion of its futures insurance fund.

The exchange pledged to rebuild SAFU to approximately $1 billion but did not specify when the money would be returned. It has also not disclosed the amount drawn from the futures insurance fund.

Replenishment Plans Remain Unclear

The reduced Bitcoin balance has left Binance’s user protection reserve well below its original target, with no confirmed schedule for restoring it.

CoinDesk has reached out to Binance for clarification on the fund’s remaining balance and replenishment plans.

The latest development follows the exchange’s announcement that it had replaced 90% of the cryptocurrency stolen during the $6.3 billion hack.

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