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He announced Binance said that it will change $1 billion SAFU fund stablecoins in Bitcoin reserves within 30 days, in response to the rise of public criticism in the community intensified after the famous Wall Street investor Cathie Wood publicly claims that the recent market weakness of Binance related to the deleveraging event.
The exchange promised to maintain the value of the fund at $1 billion through regular rebalancing, and to restore it with more Bitcoin if fluctuating prices push the fund down to $800 million.
The move comes as Binance is facing a major blow to its history since the October 10 fall, with critics wanting to… English and Chinese speaking groups That the platform uses its profits to build Bitcoin reserves and support the entire industry.
Although Binance has been subject to criticism since its inception, the current struggle intensified after Wood appeared on social media, and expanded to include concerns about the nature of tokens, market structure, and platform transparency.
An open letter to the crypto community
In times of market volatility and stress, the impact on the entire industry is felt by Binance as well.
As a global industry leader, we hold ourselves to high standards and continuously improve based on feedback from… pic.twitter.com/HvWEQYjuKZ
– Binance (@binance) January 30, 2026
Cathie Wood’s words are fueling public anger
appeared Cathie Wood, founder of ARK Invest, appeared on Fox Business on January 26, explaining the recent weakness of Bitcoin by saying that ” On October 10 last year, Binance experienced a software problem that led to a significant reduction in liquidity, forcing the closure of $28 billion. “.
The comment by one of Bitcoin’s biggest supporters on Wall Street has been widely recognized in the cryptocurrency community, especially since ARK bought shares in Coinbase for over $20 million in the same week.
Binance co-founder He Yi quickly responded by writing, “ Cathie Wood is not a Binance user. We do not ship to US individuals or organizations. I don’t mean to offend “But he deleted the message soon.
This withdrawal seems to reflect an inner realization that these words opened the door to frustration three months ago.
Wood’s comment sparked anger that has been building since October, when Binance’s limited public disclosure of the service’s end left many users dissatisfied.
According to For BlockFlow analysis Criticisms now range from operational concerns to serious accusations about platform management, with some voices comparing the current situation to the failure of previous commercial platforms.
Even the competition Log in In response, the OKX Star Show host wrote on January 28 that “ The accident took a heavy toll on the industry “, although he avoided mentioning Binance directly.
Criticism focuses on the October crash and the inclusion of digital currencies
The October 10 event saw about $19 billion worth of liquidations forced in the cryptocurrency markets, although experts later explained that the real traders represented 5% to 15% of the figure, translating between $950 million and $2.85 billion in real losses according to Kaia DLT Foundation Chairman Sam Siu.
Binance paid $283 million in compensation to affected users, saying that its systems worked as intended during what it described as a severe market crisis.
The public’s frustration is focused only on these payments, which represent about 1% of the total amount withdrawn, and questions continue about the risk of machines and market-making services.
Technical difficulties during the period of high volatility prevented users from managing orders, while a high number of orders, specification errors, and product cancellations contributed to the chaos.
Different controversies surround Binance Alpha, an early stage exchange They are claiming Critics say many of the projects listed follow a path of initial profits followed by significant declines.
A statistical analysis of user feedback shows that 9 out of 10 alpha tokens fail to maintain their value, leading some to question whether listings offer unfair advantages to insiders while every buyer has losses.
Markets are committed to Bitcoin reserves amid institutional expectations
Binance explained what it did in 2025 in its open letter accompanying the announcement of SAFU, noting that it recovered $48 million in wrongly stored assets in 38,648 cases, prevented $6.69 billion in fraud damage by helping 5.4 million users, and connected with illegal international operations with $1 million.
The exchange kept proof of reserves covering approximately $162.8 billion spread across 45 types of crypto assets while listing projects across 21 blockchains.
Founder Changpeng Zhao touched on what he described as “ Fake news and threats “Regarding recent comments on the market, I emphasize that” Binance only transfers a portion of its funds to make payments. It is a great company in fundraising “.
FUD does no harm to the cause. My followers increased.
FUD destroys the market (ie everyone).
I/Binance does not trade at any meaningful level.
My transaction = I run my card and $5 worth of BNB is exchanged/sent to the coffee shop.
I don’t run Binance anymore, but based on what it is…
— CZ
BNB (@cz_binance) January 30, 2026
He added that the stock exchange operates under the supervision of global regulators who can review every trade in every account.
Despite the controversy surrounding the platform, many organizations’ practices remain encouraging.
A recent survey of 148 funds worldwide conducted by Coinbase Institutional and Glassnode showed that 70% of institutions consider Bitcoin to be undervalued despite its decrease from more than $125,000 to around $90,000, while 62% of institutions have remained or increased their distribution of cryptocurrencies since October.
Separately, a study conducted by Bitwise and VetaFi found that 32% of financial advisors allocated part of their money to cryptocurrencies in client accounts in 2025, up from 22% in 2024.
A note Binance Turns $1 Billion SAFU Fund into Bitcoin After Criticism – Will Bitcoin Rise Soon? appeared for the first time Cryptonews Arabic.
