Binance announced Tuesday that it has now covered 90% of the funds lost in a recent security breach, up from approximately 80% in its previous update. The cryptocurrency exchange stated that all major assets, including Bitcoin (BTC), Ether (ETH), Tether (Tether USD) (USDT), Binance Coin (BNB), Solana (SOL), USD Coin (USDC), XRP, USD1, RLUSD, and Zcash (ZEC), are now fully backed at 100%.
Asset Replenishment Efforts
Binance is continuing to acquire the remaining affected tokens through market and over-the-counter (OTC) channels to reach 100% coverage for all assets. The company has committed to absorbing the financial impact of the stolen funds, assuring users that they will not bear any losses.
The replenishment strategy involves several key components:
- Secure Asset Fund for Users (SAFU): A portion of SAFU, Binance’s emergency reserve fund, is being deployed. Users will be able to view the updated balance within the next 24 hours.
- Futures Insurance Fund: A portion of the exchange’s Futures insurance fund is also being utilized. The remaining balance of this fund meets regulatory requirements, and its updated status will be accessible to users.
- Binance’s Corporate Treasury: The company’s own treasury is contributing to cover the losses.
The outstanding 10% of covered assets consists of tokens not among the top ten listed. These less liquid assets may require more time to source in the necessary quantities. Binance is collaborating with industry partners to complete these acquisitions and will provide further updates on its progress.
Proof of Reserve Update
In parallel, Binance has conducted a new Proof of Reserve (PoR) snapshot as of October 31, 2026, 00:00 (UTC), which has been updated on its PoR website. This snapshot offers a current view of assets that are fully accounted for, reinforcing the exchange’s commitment to transparency. The generation of the full zero-knowledge proof, due to its computational intensity, is estimated to take 40 to 50 hours. Users holding any of the ten listed tokens can expect to independently verify that their assets are backed at a minimum of 1:1 once the full proof is available, anticipated by Tuesday, November 3, 2026 (UTC).
Binance reiterated its pledge to fully cover the financial repercussions of the stolen funds, emphasizing its dedication through measurable progress, transparent reporting, and concrete actions.
Understanding SAFU and Futures Insurance Funds
What is the Secure Asset Fund for Users (SAFU)?
SAFU is an emergency reserve fund established by Binance in July 2018. Its purpose is to safeguard user assets during extreme events, such as security breaches or platform-wide incidents. Binance has historically allocated a percentage of trading fees to grow this fund.
Will Binance replenish the SAFU fund?
Binance is committed to replenishing SAFU to restore its size to approximately US$1 billion. This replenishment ensures the fund remains adequately resourced and prepared to protect users, aligning with its role as an emergency reserve.
If BTC is already 100% covered, why is SAFU being deployed?
A portion of the SAFU fund is being utilized to acquire the remaining 10% of outstanding assets across all tokens, thereby achieving 100% coverage for every asset.
Can a user view the SAFU Fund?
The SAFU wallet address for BTC is publicly viewable on blockchain explorers, such as Blockchain.com, at the following address: 1BAuq7Vho2CEkVkUxbfU26LhwQjbCmWQkD.
What are Futures Insurance Funds?
Futures Insurance Funds serve as safety nets on Binance, designed to mitigate the impact of liquidations. Their primary functions include reducing the occurrence of Auto-Deleveraging (ADL), protecting futures traders from losses due to bankrupt positions, and ensuring that profitable positions are fully paid. These funds are financed by Binance, including Liquidation Clearance Fees, and are separate from user assets. Binance has rebalanced its Futures Insurance Funds, reallocating a portion of their balance to cover the affected assets.
Is there a higher risk of Auto-Deleveraging (ADL)?
Binance maintains its Futures Insurance Funds above required levels. If a balance falls below the mandated threshold, Binance replenishes it from company funds, as has been done previously. The portion reallocated was in excess of these requirements, thus not impacting coverage.
Can a user view the Futures Insurance Funds on Proof of Reserves (PoR)?
No, Futures Insurance Funds are not displayed on PoR. The fund itself is publicly viewable and refreshes daily at 00:00 (UTC). PoR is designed for users to verify that their individual assets are fully backed. The Futures Insurance Funds are Binance’s proprietary reserves.
Can a user verify their assets are fully backed on Binance?
Users can verify the backing of their assets through the Proof of Reserve system.
