Periods of market stress often test major platforms. Cryptocurrency exchange Binance released an open letter on Jan. 29 outlining measures to reinforce user protection, compliance cooperation, transparency, and long-term industry development.
In the letter, Binance addressed its approach to safeguarding user assets through the Secure Asset Fund for Users, or SAFU, an emergency insurance fund designed to protect users in extreme scenarios such as security incidents. As of January 2026, the SAFU fund wallet comprises 1 billion USDC stablecoin. Binance tied SAFU to its broader philosophy on risk management and long-term resilience, emphasizing bitcoin’s role within the crypto ecosystem.
“Guided by our belief that BTC serves as the core asset in the crypto ecosystem and represents long-term value, Binance will continue to stand alongside our industry through market cycles and uncertainty, continuously investing resources into the crypto ecosystem,” the letter states, adding:
“Accordingly, Binance will convert the SAFU fund’s $1 billion stablecoin reserves into bitcoin reserves, with plans to complete the conversion within 30 days of this announcement.”
The passage frames the move as a structural decision tied to asset durability rather than a short-term response to market conditions.
Read more: Binance: Crypto Breaks out of Retail Era as Institutions Lock in Long-Term Exposure
The letter further explained how the SAFU fund will be managed after the conversion, stating:
“Binance will conduct regular rebalancing of the SAFU fund based on monitoring its market value. If the fund’s market value falls below $800 million due to BTC price fluctuations, Binance will rebalance the fund to restore its value to $1 billion.”
Alongside this framework, Binance outlined key operational metrics, including 38,648 incorrect deposit recoveries totaling $48 million and cumulative recoveries exceeding $1.09 billion. Risk controls supported 5.4 million users and helped prevent about $6.69 billion in scam-related losses, while cooperation with global law enforcement led to $131 million in illicit funds confiscated. The exchange also cited spot listings across 21 public blockchains, including ethereum, BSC, and solana, and proof-of-reserves showing roughly $162.8 billion in fully backed user assets across 45 crypto assets, reinforcing its emphasis on transparency and sustained industry participation.
- Why is Binance converting the SAFU fund into bitcoin?
Binance says BTC represents long-term value and will anchor the $1 billion SAFU fund for user protection. - How will Binance manage SAFU if bitcoin prices fall?
Binance plans to rebalance SAFU back to $1 billion if its value drops below $800 million. - How much user asset recovery did Binance report for 2025?
Binance said it helped recover $48 million in 2025, pushing cumulative recoveries past $1.09 billion. - What did Binance disclose about proof-of-reserves?
The exchange reported $162.8 billion in fully backed user assets across 45 crypto assets.
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