SAFU (Secure Asset Fund for Users) is an emergency fund created by Binance in 2018 to protect users' crypto assets from hacks or critical failures. Binance allocates a percentage of trading fees to maintain this fund in cold wallets, generally valued at $1 billion USD.
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Key Details of SAFU at Binance:
Synonym/Origin: The term comes from a viral meme "Funds are safu" (Funds are safe), popularized by former CEO Changpeng Zhao, becoming a synonym for guarantee and security on the platform.
Operation: It acts as an emergency insurance, funded by 10% of trading fees, intended to cover losses from cyber thefts or unforeseen platform issues.
Usage: In May 2019, Binance used this fund to cover the loss of 7,000 BTC from users after a security breach.
Transparency: The cold wallets of the fund are publicly visible on the blockchain.
Update: By early 2026, Binance has transferred the fund into a combination of assets, including Bitcoin, to strengthen protection.
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In summary, SAFU is a financial safety net that generates trust in the Binance ecosystem, guaranteeing that, in an adverse scenario, users' assets are protected.
#SAFU! $
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