Binance's $1 Billion SAFU Fund for this time was set up a year ago

BlockBeats News, January 30th, 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 Fund address to the new SAFU wallet address (0x420) mentioned in the announcement one year ago (December 12, 2024), all in USDC, currently with no further action.

According to the official announcement, Binance announced in January 2022 (early to mid last bear market) that its SAFU Fund address held $1 billion, composed of BNB, BTC, USDT, and TUSD. As the market declined further, Binance announced on November 9, 2022 (bottom of the last bear market) that the market drop reduced the SAFU Fund's holdings to $735 million, and they would further increase their assets to bring the fund back to $1 billion (BUSD and BNB $700 million, BTC $300 million). Subsequently, 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 protecting user assets in extreme situations (such as hacks, security vulnerabilities, or other unexpected events). The fund is mainly used to compensate affected users' losses, rather than for day-to-day operations. It was previously used for full compensation of affected users in the May 2019 hack (7000 BTC) and the December 2020 unlimited minting attack (10.1 million U).