Binance

Binance is the largest cryptocurrency exchange by trading volume, founded in 2017. It serves over 280 million users globally and relocated its headquarters to Abu Dhabi, UAE. The platform is custodial — Binance holds private keys on behalf of users — and supports hundreds of assets across multiple blockchains.

Security

• Cold storage: The majority of user assets are held in cold storage, isolated from internet-connected systems.
• SAFU fund: Binance maintains a $1 billion Secure Asset Fund for Users (SAFU), converted to 15,000 BTC as of early 2026. The fund is rebalanced if its value drops below $800 million.
• Proof of reserves: Binance publishes periodic Merkle-tree proof-of-reserves reports. As of late 2025, $162.8 billion in user assets had been verified across 45 asset categories. Reports are self-published rather than independently audited by a third party.
• Account controls: Two-factor authentication, withdrawal whitelisting, anti-phishing codes, and device management are available to all users.
• Custodial model: Users do not hold their own private keys. For long-term holdings, a self-custody hardware wallet is a lower-risk option.

Regulation

• Binance holds regulatory licences in over 20 jurisdictions, including the UAE (ADGM), France (AMF), Italy, Australia (AUSTRAC), Japan (FSA), and Sweden.
• In November 2023, Binance pleaded guilty to US Bank Secrecy Act and sanctions violations, paying a $4.3 billion settlement with the DOJ, FinCEN, and OFAC — the largest in US Treasury Department history at the time. A court-appointed compliance monitor was imposed; as of September 2025, Binance was in negotiations to modify that requirement.
• The FCA in the UK has not authorised Binance to conduct regulated activities.
• The main Binance.com platform is not available to US residents. Binance.US, operated by BAM Trading Services, is a separate entity.

Incident History

• May 2019: Hackers stole 7,000 BTC (~$40 million) from Binance's hot wallet using phishing and malware. All affected users were reimbursed from the SAFU fund.
• October 2022: A vulnerability in the BNB Chain cross-chain bridge was exploited; approximately $100 million was drained before validators halted the chain.
• December 2025: Trust Wallet, a Binance-owned product, was affected by a compromised third-party Chrome browser extension that stole user credentials. Approximately $7 million was lost; Binance pledged reimbursement to affected users.