Binance Uses Half of SAFU Bitcoin Fund After $6.3 Billion Hack, Releases Reserve Proof

Binance Moves Half of SAFU Bitcoin Fund to Cover Hack Losses

Binance, a cryptocurrency exchange, transferred about 7,499 Bitcoin from its Secure Asset Fund for Users, an emergency fund meant to protect customers, after a $6.3 billion hack on Thursday. Its Bitcoin wallet, a digital storage for the cryptocurrency, now holds about 7,500 Bitcoin, worth roughly $583 million, down from about 15,000 Bitcoin before the transfer. The exchange confirmed the move on Saturday and tied it to the partial use of its user protection fund.

The FBI attributed the theft, described as the largest in cryptocurrency history, to North Korea on Saturday and named the hackers TraderTraitor. Binance paused withdrawals after the attack and started reopening them in phases on Sunday.

Key Numbers From the Report

• 7,499 Bitcoin transferred from SAFU on Saturday
• About 15,000 Bitcoin held before the transfer
• About 7,500 Bitcoin, worth roughly $583 million, held as of Monday
• About 95% of affected assets replenished, up from 90% the previous day
• Proof-of-reserves snapshot covers 10 cryptocurrencies, including Bitcoin, Ether and USDT

What Binance's SAFU Policy Says

Binance's policy states that if the fund's market value falls below $800 million because of Bitcoin price changes, the exchange will rebalance it to restore the value to $1 billion. The policy does not set a timeline for replacing funds taken after a security incident.

Binance did not immediately respond to questions about how much remains in SAFU, further deployments, or plans to refill the fund.

Confirmed Details From the Report

Binance confirmed the 7,499 Bitcoin transfer and linked it to SAFU. The exchange said customers can now verify their balances against a proof-of-reserves snapshot taken on Saturday. The snapshot showed customer holdings in 10 cryptocurrencies were backed at least one-to-one.

What Remains Unknown

Binance has not provided a timeline for restoring the SAFU fund. The exchange also did not share details on whether it will take more from the fund or how it plans to replenish it.

Why This Matters for Binance Users

SAFU is designed to cover losses for users. With about half its Bitcoin balance moved, the fund's future level is uncertain. The proof-of-reserves release lets customers check that their holdings are backed, and Binance plans another snapshot for more tokens on Wednesday.

Next Steps for Proof of Reserves

Binance plans to take another snapshot covering more tokens on Wednesday. The accompanying cryptographic proof is expected to take another 40 to 50 hours to generate.

Where This Information Came From

• Cointelegraph

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