Binance #safu fund

[mr.mister]

Does anyone know if Binance can take care  of the 7,000 + lost btc by themselves, or are they going to need help from Justin Son. Also I heard somewhere that there #safu fund is in bnb. Can anyone confirm this?

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[CryptoBry]

Does anyone know if Binance can take care  of the 7,000 + lost btc by themselves, or are they going to need help from Justin Son. Also I heard somewhere that there #safu fund is in bnb. Can anyone confirm this?

I have not yet heard anything on that matter by Binance but on my opinion I think they can easily take care of this problem as we know that Binance has been very profitable right from the very start. So we should not expect any solvency problem that Binance could not face with flying colors. This can be the biggest test of Binance's resiliency as the top cryptocurrency exchange in the marketplace. Their number one job for now is to make sure that the trust and confidence they are enjoying will not be diminished so that no competitors can take advantage of the situation.

[Kemarit]

Does anyone know if Binance can take care  of the 7,000 + lost btc by themselves, or are they going to need help from Justin Son. Also I heard somewhere that there #safu fund is in bnb. Can anyone confirm this?

It was already confirmed by CZ himself in this tweet that everything will be covered under SAFU.

https://twitter.com/cz_binance/status/1125956811574484993

I don't know about Justin Sun trying to bail them out though. Binance has tons of reserved money to reimburse those who have lost their money in the hacked. They will just have to wait for the official announcement.

[avikz]

SAFU means Secure Asset Fund for Users!

Binance website says the below,

SAFU, the Secure Asset Fund for Users is an emergency insurance fund. On the 3rd of July, 2018, Binance announced the Secure Asset Fund for Users.

“To protect the future interests of all users, Binance will create a Secure Asset Fund for Users (SAFU). Starting from 2018/07/14, we will allocate 10% of all trading fees received into SAFU to offer protection to our users and their funds in extreme cases. This fund will be stored in a separate cold wallet

Link: https://www.binance.vision/glossary/secure-asset-fund-for-users

And as already posted by my fellow community member kemarit above, this news has been confirmed by CZ himself.

[mk4]

Does anyone know if Binance can take care  of the 7,000 + lost btc by themselves, or are they going to need help from Justin Son.

Can they cover it? I definitely think they could. While 7000+ BTC is definitely a LARGE amount(0.03% of total BTC supply), I'm very confident that they can make that money back in no time. You're completely underestimating how big Binance is and how much money they're making.

Also I heard somewhere that there #safu fund is in bnb. Can anyone confirm this?

I think it's in BTC, or majority is. I don't think it would make much sense to have a "fund" with significantly lower liquidity.

[pooya87]

remember that we are talking about $40 million dollars not a small amount that a business like Binance can easily recover from. i seriously doubt that they are going to cover all the losses, not any time soon anyways. but i don't think they are going to go away either. it will probably be something like what Bitfinex did. they will first give back some un-withdrawable tokens to their users as compensation of what they lost and force them to come back and continue to trade and slowly over the long term pay back small amounts of it. and to do that they probably are going to manipulate using their centralized token (BNB) with some pumps and other methods to earn that money to pay back.

[xtraelv]

If the analysis is correct that Binance earns 7000BTC every 47 days then the 10% of that went to SAFU since 4 July 2018 only amounts to less than 5000 BTC  so they must be funding the rest from reserves

[vennali]

If the analysis is correct that Binance earns 7000BTC every 47 days then the 10% of that went to SAFU since 4 July 2018 only amounts to less than 5000 BTC  so they must be funding the rest from reserves

Is there some place or address where we can monitor or see what is the current amount in their SAFU. I certainly praise Binance for doing this, but the hack could have been bigger and its good to know how much they have in that fund. I haven't really noticed them saying how much would the SAFU cover this time.

[davis196]

If the analysis is correct that Binance earns 7000BTC every 47 days then the 10% of that went to SAFU since 4 July 2018 only amounts to less than 5000 BTC  so they must be funding the rest from reserves

Is there some place or address where we can monitor or see what is the current amount in their SAFU. I certainly praise Binance for doing this, but the hack could have been bigger and its good to know how much they have in that fund. I haven't really noticed them saying how much would the SAFU cover this time.

Binance might rean 7000BTC every 47 days,but what about all their operational costs?
I'm sure that those 7000BTC per 47 days isn't pure profit.However,if Binance was hacked once,it will be hacked twice.They have to find their weak spots and invest money into increased security,which will increase their costs even more.

[Nadziratel]

Does anyone know if Binance can take care  of the 7,000 + lost btc by themselves, or are they going to need help from Justin Son. Also I heard somewhere that there #safu fund is in bnb. Can anyone confirm this?

7000 BTC is big amount of us. But Binance earn this amount of BTC sometimes daily. I don't know what will happen next time but I am sure that Binance will recover all this damage for this time.

[Wingo]

He tweeted that the SAFU will cover the 7000 BTC stolen by the hackers. The stolen user funds will surely be covered. I admire them for their fast and smooth response to this problem. But there is still a problem, the hacker was able to acquire a number of API and 2FA keys, which gives the hacker ability to control some accounts, they are still unsure if the hacker still has access. This is the reason why the deposit and withdrawals are locked for a week.

Here is the complete security breach report posted on their official twitter: https://binance.zendesk.com/hc/en-us/articles/360028031711

[Haunebu]

remember that we are talking about $40 million dollars not a small amount that a business like Binance can easily recover from. i seriously doubt that they are going to cover all the losses, not any time soon anyways. but i don't think they are going to go away either. it will probably be something like what Bitfinex did. they will first give back some un-withdrawable tokens to their users as compensation of what they lost and force them to come back and continue to trade and slowly over the long term pay back small amounts of it. and to do that they probably are going to manipulate using their centralized token (BNB) with some pumps and other methods to earn that money to pay back.

I disagree. Binance is easily the most popular exchange on the market right now which is why 7000 BTC is not a huge amount for them, but it is a pretty big amount for individuals like us.

They can easily earn it all back in less than a month in my opinion and SAFU will take care of the customers.

[mindrust]

It looks like SAFU will cover the binance users for this time. This can't go on forever however. What if the amount was a lot bigger than 7k btc? What then? In the long run whether you'll be covered by SAFU or not does no matter. If you keep playing with big amounts on the exchanges, you are at risk.

Be safe and withdraw your coins to your own wallet so you won't be worrying about the exchange hacks at all.

[bob123]

As far as i am concerned, malicious actor were able to obtain API keys, 2FA codes, etc.. from the victims, correct ?

Why does binance even cover those losses which obviously happened due to people who have no idea how to secure sensitive information ?

There was no security breach at all (correct me if i'm wrong). What has binance to do with this ? Why reimbursing the customer for something which is not their fault ?


It is not like the developer of core now reimburse anyone who gets his funds stolen because he publicly posts his private keys.
Or shall ThomasV now reimburse everyone who publicly posts his seed which results in funds getting stolen ? I don't think so.


So.. i see 3 possibilities:
1) Binance indeed head a security breach and feels responsible
2) This is some sort of 'hackers stole money' - tax fraud from binance
3) Binance is just plain stupid for covering the losses caused by the victims

[dothebeats]

As far as i am concerned, malicious actor were able to obtain API keys, 2FA codes, etc.. from the victims, correct ?

Why does binance even cover those losses which obviously happened due to people who have no idea how to secure sensitive information ?

In order to negate bad press, and to ensure that people will keep patronizing them. Also, the SAFU fund does not specify which 'extreme cases' is it talking about, so surely this does fall under Binance's terms for SAFU, because CZ already announced it.

So.. i see 3 possibilities:
1) Binance indeed head a security breach and feels responsible
2) This is some sort of 'hackers stole money' - tax fraud from binance
3) Binance is just plain stupid for covering the losses caused by the victims

1. Highly likely, as shrugging it off would make them look as if they aren't concerned for their customers' funds.
2. Could be, and a highly successful cover-up if you ask me.
3. They surely have thought this out with their legal counsel so this is out of the equation.

[Nadziratel]

As far as i am concerned, malicious actor were able to obtain API keys, 2FA codes, etc.. from the victims, correct ?

I answered a quetion in a different thread. A lot of thread has just created about Binance hack. So there is nothing you should afraid of now.

No matter how hard we try. One day they will find a way again. This is the life story of mankind. First, the disease occurs, then the humanity to deal with. Sometimes the solution comes in days. Sometimes it takes years. There's not a lot we can't come up with. I'm sure there will be an extra security measure now and this will be enough for a while. Then we will experience the same things ... The nature of mankind ...

[Anonylz]

Yes Absolutely right, if binance chose to ignore this incidents on the basis that it was not their fault that peoples funds were stolen as a result of their carelessness, many won't see it that way, rather the blame will be on binance regardless whether they had something to do with the neglect or not, people always look for who to blame in their own mistakes, CZ is a business man, so he wouldn't want anything that will dent his business in the slightest.
i also saw a medium post in a telegram group about Justin Sun agreeing to deposit 7,000BTC on binance, though i didn't open to read details just the headlines, so can't say its authenticity.

[bob123]

As far as i am concerned, malicious actor were able to obtain API keys, 2FA codes, etc.. from the victims, correct ?

I answered a quetion in a different thread. A lot of thread has just created about Binance hack. So there is nothing you should afraid of now.

[...] I'm sure there will be an extra security measure now and this will be enough for a while. Then we will experience the same things ... The nature of mankind ...

Additional security measurements are not needed. You can create as much protecting mechanisms as you want.
If the people using them are too stupid to properly make use of it, it is completely useless.

People need to learn how to protect sensitive information. That's all which is needed. Making a X-factor-authentication is useless if people don't understand how to store the codes.
Same applies to password policies. A long and complex password is fine, but if he stores it in plain text on his windows XP.. that doesn't protect him.

[BitBustah]

Nothing is ever 100% safe , people need to realize this.  I still trust Binance compared to smaller exchanges since they are covering this loss.  Of course they really had no choice or they would lose all credibility.   Remember, not your keys not your coins!!

[CryptoBry]

SAFU means Secure Asset Fund for Users!

Binance website says the below,

SAFU, the Secure Asset Fund for Users is an emergency insurance fund. On the 3rd of July, 2018, Binance announced the Secure Asset Fund for Users.

“To protect the future interests of all users, Binance will create a Secure Asset Fund for Users (SAFU). Starting from 2018/07/14, we will allocate 10% of all trading fees received into SAFU to offer protection to our users and their funds in extreme cases. This fund will be stored in a separate cold wallet

Link: https://www.binance.vision/glossary/secure-asset-fund-for-users

And as already posted by my fellow community member kemarit above, this news has been confirmed by CZ himself.

SAFU can easily take care of this problem and if ever there is still some gap then I think Binance can also take a dip at their own funds. I think that Binance is a well-managed business and they are always prepared for the worst so this is just a little bit setback for them.

I have been intrigued with that SAFU term actually and it is just now I realized what it means and how it became the substitute for the word "safe" just like the story of the world "hodl" which is really popular.