Binance Refutes Claims that it is Selling Off its Digital Assets Reserve, Says Users Assets are SAFU

Binance, the world’s largest cryptocurrency exchange by trading volume, has dismissed rumors of a large-scale asset sell-off, assuring users their funds remain secure.

This comes after recent on-chain data sparked speculation by showing the platform’s non-customer reserves plummeted by $8 billion between December 2024 and February 2025.

According to a report by X user, Kuai Dong, as of December 2024, the exchange had non-customer holdings totaling $14 billion, including substantial amounts of Bitcoin, Ethereum, Solana, and Tether. However, Binance’s reserves have shrunk by $8 billion as of January 2025.

The exchange has attributed these shifts to internal treasury management strategies as opposed to market liquidation.

Sharp Decline in Binance’s Crypto Reserves Sparks Concerns

Data from February 10, 2025, reveals a staggering reduction in Binance’s holdings of major cryptocurrencies. The exchange’s non-customer Bitcoin (BTC) reserves dropped from 46,896 BTC ($4 billion) to just 2,746 BTC, while Ethereum (ETH) holdings fell from 216,312 ETH ($700 million) to 174 ETH. Similarly, Tether (USDT) reserves plunged from $2.99 billion to $275.7 million, and Solana (SOL) holdings dwindled from 442,234 SOL to 4,179 SOL.

These staggering figures initially fueled rumors of a sell-off on social media with many drawing comparisons with the FTX scandal, particularly as Binance’s major assets holdings like BTC and ETH fell by over 90%.

In response to mounting speculation and unease, Binance clarified that the adjustments reflect internal accounting practices, not asset liquidation.

“Binance is not selling assets. This was simply an adjustment in the Binance treasury’s accounting process. User funds are SAFU, as always.” Binance Customer Support clarified on X.

The Secure Asset Fund for Users (SAFU), is an emergency insurance fund, which remains intact as a safeguard against potential threats of bankruptcy or loss of customer funds.

Binance’s Reallocation Strategy

In a blog post, Binance revealed that it has liquidated its Bitcoin and Ethereum reserves, locking its profits in USDC.

Kuai Dong also noted the strategic nature of Binance’s moves saying most cryptocurrencies have been reallocated into the stablecoin USDC, adding that there was “nothing to worry about”.

While Binance’s BTC, ETH, SOL, and USDT reserves saw near-total reductions, Its USDC reserves however surged by $1 billion, pushing its collateralization rate above 40%.

This move signals a broader strategy by the exchange to mitigate volatility risks and streamline liquidity management amid recent fluctuating market conditions.