Good day everyone,
I hope you are all well are having an excellent day, welcome to CryptoGod-1’s blog on all things crypto. For those of you aware, SAFU, or the Secure Asset User Fund, is a fund set up by Binance which was created in July 2018 to protect user assets in the event of a hack or theft. Since the news of the SEC going after both Binance and Coinbase emerged last week, the value has began to drop.
Binance SAFU
The emergency fund was set up by Binance back in July 2018, and since the news of the back to back lawsuits against the worlds two largest digital asset exchanges by trading volume from the U.S. Securities and Exchange Commission (SEC), the value of the SAFU has dropped from around $950 million at the start of June down to roughly $861 million. This represents a near 10% drop in value. The SAFU is mainly composed of Bitcoin, according to the address provided by Binance for the SAFU, along with the native Binance token BNB. Both Bitcoin and BNB have seen declines in value over the previous week of roughly ~6% and ~20% respectively.
BNB was listed by the SEC as one of the unregistered securities, alongside the Paxos-issued stable coin BUSD. Many other cryptocurrencies such as Solana and Cardano were also listed, which has seen the entire cryptocurrency market nosedive. On top of the claims of trading securities unlawfully, the SEC has also accused Binance of failing to register as a securities exchange, illegally serving U.S. customers, and a breach of trust with users funds from both its international and U.S. based platforms. Binance has denied the allegations, claiming that all funds are safe.
According to a spokesperson for Binance, their emergency fund is regularly reviewed and topped up with new capital when needed. A clear example of this was back during the fiasco of the FTX collapse, when Binance were required to top up the fund from $735 million to $1 billion while the market was crashing.
SAFU Wallet Addresses:
- BTC: 1BAuq7Vho2CEkVkUxbfU26LhwQjbCmWQkD
- BNB and USDT (BEP20): 0x4B16c5dE96EB2117bBE5fd171E4d203624B014aa
- TUSD (ERC20): 0x4B16c5dE96EB2117bBE5fd171E4d203624B014aa
Binance Bite Back Against Rumours
With the rumours circulating following the havoc caused over the previous week or so, Binance have fought back and made it clear that no Bitcoin or BNB had been sold by the exchange. Changpeng Zhao was quick to hit twitter and made it clear the change in market price was the reason behind the change in value. This is also reflected in the exchanges wallets, which show no recent outbound transactions.
While the SAFU may be perfectly intact, users are still concerned regarding a recent update from Binance. The day before the SEC charges were announced, Binance updated its Terms of Use, stating that the exchange could willingly change the assets held within users’ accounts if previously held assets were later delisted. Hopefully this was just a precaution, although some will be worried if their precious assets are changed without their consent, not just because of their love of the technology, but any potential tax implications it may involve.
“Binance may, but is not obliged to, notify users in advance and Binance shall have no liability to Users in connection with such additions, removals, conversions or amendments.”
Have a great day.
Peace. CryptoGod-1.
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