In a significant move, two Secure Asset Fund for Users (SAFU) wallets belonging to Binance have initiated the transfer of assets totaling $1.75 billion in Bitcoin (BTC) and Binance Coin (BNB) to the exchange’s Hot Wallets within the past hour.
The transfer includes:
– 16,277 BTC, equivalent to approximately $1 billion.
– 1.364 million BNB, valued at around $749 million.
Binance deposited 16,277 $BTC($1B) and 1.36M $BNB($748.62M) to hot wallet, then withdrew 1B $USDC to the SAFU fund wallet.
On Jan 29, Nov 9, 2022, and Mar 17, 2023, Binance withdrew 1.36M $BNB($499.24M) and 16,277 $BTC($453.25M) from the hot wallet as SAFU assets.
Based on the… pic.twitter.com/wqjoZdDBsw
— Lookonchain (@lookonchain) April 18, 2024
This substantial movement of assets comes on the heels of previous withdrawals from the SAFU wallets. On January 29, November 9, 2022, and March 17, 2023, Binance withdrew 1.36 million BNB (worth $499.24 million) and 16,277 BTC (valued at $453.25 million) from the hot wallet as SAFU assets.
The recent deposits are part of Binance’s announced plan to convert all SAFU assets to 1.0 billion USDC. This conversion aims to enhance stability and reliability within the SAFU fund, moving away from BNB, USDT, and TUSD.
Binance’s decision underscores its commitment to bolstering the security and integrity of user assets stored within the SAFU reserve.
After @binance announced converting all Secure Asset Fund for Users assets to $USDC to enhance stability, we noticed 16,277 $BTC (~$1B) and 1.36M $BNB (~$749M) have been moved out of 2 #SAFU wallets and deposited back to the CEX’s Hot Wallets.
Now, the balance of 2 SAFU wallets… https://t.co/uQAspFkNVN pic.twitter.com/Pip6cEH0tV
— Spot On Chain (@spotonchain) April 18, 2024
This strategic shift towards USDC is indicative of Binance’s proactive approach to risk management and asset protection. By diversifying SAFU holdings and adopting a stablecoin with a proven track record, Binance aims to fortify its safeguards against potential market fluctuations and mitigate any potential risks associated with volatility in the cryptocurrency market.
As Binance continues to prioritize the safety and security of user funds, the conversion of SAFU assets to USDC marks a significant step towards strengthening the resilience of the platform’s risk management framework.
This move is likely to instill greater confidence among users and investors, reaffirming Binance’s commitment to maintaining the highest standards of security and reliability in the crypto industry.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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