BlockBeats News, January 30, according to on-chain data and historical announcements, tweet content shows that Binance’s “1 Billion USD SAFU Fund” funds were transferred from the “old SAFU address” to the new SAFU wallet address (0x420) mentioned in the announcement a year ago, all in USDC, and there has been no action taken so far.
According to the official announcement, Binance announced in January 2022 (early to mid last bear market) that its SAFU Fund address held $1 billion, consisting of BNB, BTC, USDT, and TUSD at that time. As the market continued to decline, Binance announced on November 9, 2022 (bottom of the last bear market) that the market downturn had reduced the value of its SAFU Fund holdings to $735 million, and they would further increase holdings to bring the fund size back to $1 billion (BUSD and BNB $700 million, BTC $300 million). As the market gradually recovered, Binance announced in April 2024 that all funds in the SAFU Fund would be converted to USDC to maintain stability.
It is reported that the SAFU Fund was originally established in July 2018 with the purpose of safeguarding user assets in extreme cases (such as hacking, security vulnerabilities, or other unexpected events). The fund is mainly used to compensate affected user losses, not for day-to-day operations. It was previously used for full compensation of affected users in the May 2019 hack incident (7,000 BTC) and the December 2020 infinite minting attack incident (10.1 million U).
