Binance Converts $1B SAFU Fund to Bitcoin Following Criticism âEUR" Is a Rally Coming?

Binance Converts $1B SAFU Fund to Bitcoin Following Criti... Binance commits to converting its $1 billion SAFU fund to Bitcoin reserves within 30 days, addressing community backlash that intensified after Cathie Wood's televised comments about October's liquidation event and ongoing concerns about token listing quality. The post Binance Converts $1B SAFU Fund... Binance announced it will convert its $1 billion SAFU fund from stablecoins to Bitcoin reserves within 30 days, responding to mounting community criticism that intensified after prominent Wall Street investor Cathie Wood publicly attributed recent market weakness to a Binance-related deleveraging event. The exchange pledged to maintain the fund's value at $1 billion through regular rebalancing, replenishing it with additional Bitcoin if price fluctuations push the fund below $800 million.The move comes as Binance faces its most significant reputational challenge since the October 10 crash, with critics across English and Chinese-speaking communities demanding that the exchange use profits to build Bitcoin reserves and support the broader industry.While Binance has faced criticism since its inception, the current backlash escalated dramatically after Wood's television appearance and has expanded to encompass concerns about token listing quality, market structure, and platform transparency. An open letter to the crypto community During periods of market volatility and pressure, the impact felt across the industry is naturally also felt by Binance.As a global industry leader, we hold ourselves to elevated standards and continually improve based on feedback fromâEUR¦ pic.twitter.com/HvWEQYjuKZ- Binance (@binance) January 30, 2026 Cathie Wood's Remarks Ignite Pent-Up Community AngerARK Invest founder Cathie Wood appeared on Fox Business on January 26, explaining Bitcoin's recent weakness by stating that "on October 10 last year, Binance experienced a software glitch that triggered massive automatic deleveraging, forcing liquidations totaling approximately $28 billion." Cathie Wood: $28 Billion Bitcoin Deleveraging Caused Heavy LossesOn January 26, 2026, speaking on Fox Business, ARK Invest CEO Cathie Wood explained that Bitcoin's recent pullback was caused by a $28 billion deleveraging event triggered by a Binance software glitch on OctoberâEUR¦ pic.twitter.com/CVODMnv3D8- Wu Blockchain (@WuBlockchain) January 27, 2026 The comment from one of Wall Street's most prominent Bitcoin advocates resonated across crypto communities, particularly as ARK had purchased over $20 million in Coinbase stock that same week.Binance co-founder He Yi quickly responded with a post noting, "Cathie Wood isn't a Binance user. We don't serve U.S. Individuals or U.S. entities. No offense," but deleted the message shortly after.The deletion appeared to signal internal recognition that the remark had opened floodgates to accumulated frustrations dating back three months.Wood's comment tapped into anger that had been building since October, when Binance's limited public explanations about the crash left many users dissatisfied.According to BlockFlow analysis, the criticism now ranges from operational concerns to serious accusations about platform management, with some voices comparing the situation to previous exchange failures.Even competitors joined the criticism, with OKX founder Star Xu posting on January 28 that "the incident caused real and lasting damage to the industry," though he avoided naming Binance directly. People have underestimated the impact of 10/10. The incident caused real and lasting damage to the industry.An industry-leading company should focus on strengthening core infrastructure, building trust with global users and regulators, and protecting the long-term interests ofâEUR¦ https://t.co/DIU57u8utU- Star (@star_okx) January 28, 2026 Criticism Concentrates on October Crash and Token ListingsThe October 10 event saw approximately $19 billion in forced liquidations across crypto markets, though analysts later clarified actual trader losses represented just 5% to 15% of that headline figure, translating to between $950 million and $2.85 billion in real losses according to Kaia DLT Foundation chairman Sam Seo.Binance provided $283 million in compensation to affected users, maintaining that its systems functioned as intended during what it described as extreme market conditions.Community frustration centers partly on this compensation, which represents roughly 1% of total liquidations, with questions persisting about system vulnerabilities and market maker activity.Technical failures during extreme volatility prevented users from...