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BREAKING: Binance taps half its SAFU Bitcoin holdings, releases reserve proof

About 7,500 Bitcoin is all that's left in Binance's SAFU fund, half what it held before last week's $6.3 billion hack.

SAFU (short for Secure Asset Fund for Users) is the pot Binance keeps to repay customers after a hack, and on Saturday the exchange moved 7,499 Bitcoin out of it toward replacing what was taken, leaving about $580 million.

On Monday Binance also finished the proof it had promised, so anyone holding Bitcoin, Ether, BNB and seven more coins there can check for themselves that their balance is backed one for one.

For those ten coins, customers are provably whole, and the bill has landed on Binance itself.

Former CEO Changpeng Zhao said on Monday it paid "from its balance sheet", without borrowing, selling assets or raising money.

Most of it came out of Binance's treasury and a slice of the insurance pot behind its futures market, with SAFU's Bitcoin covering the rest.

Under the fund's own rules, Binance tops it back up to $1 billion whenever a falling Bitcoin price drags it under $800 million.

The rules don't cover a refill after a hack, and Binance hasn't given a date.

The rush for the exits is already easing…

Net outflows tracked by DefiLlama peaked above $7 billion over 24 hours on Monday, then fell to about $3.3 billion, with some $128 billion still in Binance's wallets.

More networks and coins start reopening for withdrawals from Tuesday, and a fresh snapshot covering more tokens follows on Wednesday.

Until it's refilled, the fund meant to repay customers after the next hack holds less than a tenth of what was stolen this time. 🚀

Ten years ago, Nvidia traded for about $1.65 a share on a split-adjusted basis. Most people knew it as the video game chip company and never gave it a second look. Today it trades above $217, and a $1,000 stake would be worth roughly $132,000.

Almost everyone heard the name along the way, but very few bought before the crowd caught on.

Now analysts have flagged five smaller companies supplying the chips, servers, power and networking behind the AI build-out, with price targets as high as 55%. Tell us where to send them and we'll text you all five tickers free, plus SMS alerts when we spot the next setup.

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Text Me the 5 Stocks

Fred Krueger has squeezed the world's money problem into six bullet points, and his answer to all of them is Bitcoin.

He's a Stanford PhD mathematician, a former Wall Street prop trader, and the author of "Bitcoin One Million: The Final Chapter of Fiat."

Here's what he posted on Monday:

His chain starts with debt, piles the cost of the AI buildout on top, and has AI replacing most jobs along the way.

From there, he expects the dollar to get debased, because printing your way out of debt wrecks the value of the money you're printing.

The debt part checks out.

US federal debt hit $40.6 trillion on October 29, per the Treasury's daily count, up $2.5 trillion from a year earlier.

That works out to roughly $6.9 billion a day.

The trade built on that idea has had a rough year, though…

Bitcoin is sitting around $76,700, down about 13% since January and 39% below its all-time high, while gold is down about 9% over the same stretch.

For anyone holding Bitcoin as a debasement hedge, the debt keeps climbing on cue while the price has gone the other way all year.

Krueger's bet is that another $2.5 trillion a year eventually shows up in the Bitcoin price, just not on anyone's timetable. 💸

Back to the ETF flow data, our weekly read on institutional appetite.

Green means money flowing in, red means it's heading out.

The Bitcoin funds spent four days in the green and gave it all back on Friday, while the ether funds didn't get a single green day.

US spot Bitcoin ETFs lost about $202 million across five sessions, after taking in $301 million the week before.

Monday to Thursday brought in $441 million, then Friday alone lost $643 million, a touch more than the $636 million that left on the previous week's worst day.

BlackRock's IBIT still finished up $177 million, while Fidelity's FBTC lost $166 million and ARK's ARKB about $130 million.

On Friday, every Bitcoin fund that saw money move lost it, IBIT included.

Ether had it worse.

The ether funds lost about $431 million, with all five sessions in the red.

That's nearly double the $221 million that left the week before.

BlackRock's ETHA lost $391 million on its own, its 24th straight session without an inflow, while Fidelity's FETH took in about $63 million.

Bitcoin's funds lost their week on the final day, and the ether funds have now lost five weeks in a row. 📊

Mercado Bitcoin, Brazil’s largest crypto exchange, hit by $46 million security breach. Arkham data puts the loss at about $46.3 million, and Tether has frozen more than 4.5 million USDT linked to the attacker.

Nvidia and Nike Lead Biggest Wave Yet of Tokenized Stock Objections. Twelve more companies objected to trading on the planned OKX-ICE venue, taking the total to 50, which bars their tokenized shares there.

Coinbase downgraded at Morgan Stanley; price target slashed 53% on weak earnings outlook. Analyst Michael Cyprys cut the stock to underweight and his target to $120 from $258, citing weak crypto trading activity.

New Jersey drops Coinbase staking order ahead of crypto’s midterm test. The state rescinded its 2023 cease-and-desist and $5 million penalty, though California, Maryland, Wisconsin and Washington are still pursuing staking cases.

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Because what would the crypto world be without its share of memes?

Trivia Answer: A balance so small it would cost more in fees to send than it's worth 🥳

Dust is a leftover balance worth less than the network fee needed to move it. Scammers also send tiny "dusting" deposits to wallets to try to trace who owns them.

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