Binance spent half of its Bitcoin insurance fund after a $6.3 billion hack. The exchange transferred 7,499 BTC from SAFU to cover customer losses. This is the largest theft in crypto market history.
SAFU is a $1 billion user insurance fund. Binance created it as a cushion against losses. The fund's Bitcoin reserves fell by roughly half: from ~15,000 BTC to ~7,500 BTC, about $583 million.
Why this matters to a trader. While assets were being replaced, the exchange halted withdrawals. Binance has not given a timeline for restoring the fund.
How much is left in the fund?
As of Monday morning, November 2, the exchange's publicly disclosed reserve wallet held about 7,500 BTC. Binance confirmed the transfer of 7,499 BTC on Saturday.
- 7,499 BTC - partial spending of SAFU
- ~7,500 BTC - remaining in the reserve wallet, about $583 million
- $1 billion - the fund's stated size before the hack
The hole is being filled not only from SAFU. The exchange's corporate funds and part of the futures insurance fund were also used.
Who is behind the attack?
The reason for the spending is Thursday's hack. On Saturday, the FBI attributed the attack to North Korea.
- The perpetrator. The FBI named the TraderTraitor group.
- Withdrawals halted. While assets were being replaced, Binance halted fund withdrawals.
- Phased reopening. On Sunday, the exchange began restoring withdrawals in stages.
According to the exchange, about 95% of affected assets have been restored - up from 90% the day before. Less liquid tokens are being bought through the market and over-the-counter deals.
When will the fund be replenished?
The key detail for customers is in SAFU's rules. The policy promises a rebalance to $1 billion only if the fund's market value falls to $800 million due to the Bitcoin price.
Key point: the timeline for replenishing the money spent after the hack is not specified in the rules at all. The exchange did not answer questions about remaining reserves and replenishment plans.
What's next?
On Monday, Binance opened a balance verification based on Saturday's reserve snapshot.
- 10 cryptocurrencies. The list includes BTC, ETH and USDT, with backing confirmed at least 1:1.
- A new snapshot on Wednesday. It will include a larger number of tokens.
- 40-50 hours. That's how long proof generation will take.
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