In 2019 7000 BTC was stolen from Binance, it compensated users with its Safu fund. Most other exchanges would have given them a haircut
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The hackers drained the exchange’s hot wallets, taking 7,000 bitcoin, worth approximately $41 million, in a single transaction. The hack only amounted to 2% of the exchange’s total holdings. Everything else was in its offline cold wallets.
The exchange will use its Secure Asset Fund for Users (SAFU) to cover the losses. In mid-2018, after an earlier hack, Binance began to allocate 10% of all trading fees received into the fund, as a way to insure against extreme losses.
When you read that don’t forget how other exchanges have dealt with such problems.
Edit:
Some people are asking if Binance could still do that with today’s prices. Here are Binance’s SAFU wallets:
16,277 BTC – $431,226,563
https://blockchair.com/bitcoin/address/1BAuq7Vho2CEkVkUxbfU26LhwQjbCmWQkD
1,364,102 BNB – $295,678,198
100,000,000 BSC-USD
https://bscscan.com/address/0x4B16c5dE96EB2117bBE5fd171E4d203624B014aa
100,000,000 TUSD
https://etherscan.io/address/0x4B16c5dE96EB2117bBE5fd171E4d203624B014aa
That is a total safety fund of $927 million.
Source: https://academy.binance.com/en/glossary/secure-asset-fund-for-users
submitted by /u/soundingdemo
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