Secure Asset Fund for Users (SAFU)

The Secure Asset Fund for Users (SAFU) is an emergency insurance fund established by Binance, one of the world’s largest cryptocurrency exchanges, to protect users in the event of a security breach or significant loss. Binance allocates 10% of all trading fees to the SAFU fund, which is held in a cold wallet. The fund acts as a safeguard, ensuring that users’ assets are protected even in the event of a hack or major theft. Example: In 2019, Binance was hacked, and over $40 million in Bitcoin was stolen. However, users were compensated from the SAFU fund, and no individual lost their funds as a result of the hack.