Binance Shifts $1B SAFU Fund to Bitcoin as Exchange Claims $6.7B in Scam Losses Stopped
Key Takeaways:
- Binance will transfer stable SAFU protection fund worth $1 billion to Bitcoin within 30 coming days
- This move alongside with rebalance scheme, accordinging Binance will add the amount to bring the worth of the fund back $1 billion if the BTC price fluctuations makes the fund’s value below $800 million.
- These figures manifested in Binance claims of preventing $6.69 billion of scam losses and withdrawing more than $48 million user deposits in 2025
Binance has stipulated an enormous revision of how it deals with user protection in periods of market stress. The exchange in an open letter to the crypto community indicated that the action is a part of an initiative to have greater transparency, enhanced risk management, and the long-term belief in Bitcoin.
Binance Converts SAFU Reserves From Stablecoins to Bitcoin
Binance has declared that it will convert the Secure Asset Fund to Users-SAFU- in full into Bitcoin and replaces approximately $1 billion of the stablecoins. The conversion is supposed to be completed within 30 days.
SAFU was initiated in 2018 as an emergency insurance fund occurring out of a portion of the trading fees in Binance. It is designed to include the impact of such extreme events as hacks or severe failures of the system. Over time, Binance shifted much of the fund into stablecoins to reduce volatility and improve clarity around its value.
The exchange now says Bitcoin better reflects its view of crypto’s foundation. Binance described BTC as the core asset of the ecosystem and a long-term store of value, even as short-term volatility remains high.
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Rebalancing Rules Aim to Cap Downside Risk
In an attempt to manage price fluctuations, Binance will continue to monitor the market performance of the SAFU fund on a frequent basis. If Bitcoin price movements push the fund below $800 million, the exchange commits to topping it back up to $1 billion.
How the SAFU Mechanism Works
The fund is not static. Binance is going to rebalance depending on the market rather than fix the reserves in a fixed amount of BTC. This will maintain the same headline value, but allow them to ride the price fluctuations of Bitcoin.
The exchange did not specify the exact frequency of audits, but said transparency and verification remain central to the process.
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2025 Metrics Highlight User Protection and Compliance Push
The exchange said it helped users recover funds in 38,648 cases of incorrect deposits, totaling $48 million last year. Cumulative recoveries now exceed $1.09 billion.
Binance also claimed it assisted 5.4 million of its clientele with alert and security software, preventing an estimated $6.69 billion in their potential scam-related losses. When enforcement was reached, the company claimed to be collaborating with international law enforcement to lock down $131 million in illegal fund transfers.
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