Binance SAFU Bitcoin Reserve Falls to $580M After Half of Holdings Are Deployed
Binance has reduced its Bitcoin-backed emergency reserve by approximately 50%, leaving its Secure Asset Fund for Users (SAFU) with about $580 million in BTC. The exchange has yet to announce when it plans to replenish the fund to its previous $1 billion target.
Data from mempool.space showed that Binance’s publicly identified SAFU wallet, 1BAuq7Vho2CEkVkUxbfU26LhwQjbCmWQkD, held slightly more than 7,500 BTC on Tuesday. The balance followed four transactions made on October 31.
The reserve contained approximately 15,000 BTC in February, when Binance completed its conversion of the fund from stablecoins into Bitcoin. At a market price of roughly $77,000 per coin, the remaining holdings are now worth around $580 million.
SAFU Balance Falls Below Binance’s $800M Threshold
Binance’s SAFU FAQ states that the exchange will restore the fund to $1 billion if Bitcoin price fluctuations push its value below $800 million.
However, the stated policy specifically addresses losses caused by market movements and does not explain whether the same automatic replenishment requirement applies when the reserve is used to cover losses or other expenses.
Binance announced on October 31 that it would deploy part of the SAFU fund as one component of a $6.34 billion recovery package following the major security breach. The exchange also said its corporate treasury and a portion of its futures insurance fund would contribute to the response.
The company committed to rebuilding SAFU to approximately $1 billion but did not provide a timetable for completing the process. It has also not disclosed the amount taken from its futures insurance fund.
Exchange Yet to Clarify Replenishment Schedule
The reduction in the reserve has raised questions about when Binance will restore its user protection fund and how much of its other financial resources were used during the recovery effort.
CoinDesk has contacted Binance for comment, but the exchange has not yet provided further details.
The development follows Binance’s statement that it had recovered or replaced 90% of the cryptocurrency stolen in the $6.3 billion breach.
