In a dual strategic announcement, cryptocurrency exchange giant Binance has revealed two significant moves: converting its $1 billion Secure Asset Fund for Users (SAFU) from stablecoins to Bitcoin reserves, and outlining an aggressive plan to capture market share in South Korea by resolving the Gopax GoFi crisis and challenging local incumbents.
The SAFU Fund Conversion comes in response to mounting community criticism that intensified after prominent Wall Street investor Cathie Wood publicly attributed recent market weakness to a Binance-related deleveraging event. Binance pledged to complete the conversion within 30 days and maintain the fund's value at $1 billion through regular rebalancing, replenishing it with additional Bitcoin if price fluctuations push the fund below $800 million.
The criticism escalated dramatically after Wood's January 26 appearance on Fox Business, where she explained Bitcoin's recent weakness by stating that "on October 10 last year, Binance experienced a software glitch that triggered massive automatic deleveraging, forcing liquidations totaling approximately $28 billion." This comment from one of Wall Street's most prominent Bitcoin advocates resonated across crypto communities, particularly as ARK had purchased over $20 million in Coinbase stock that same week.
The October 10 event saw approximately $19 billion in forced liquidations across crypto markets, with analysts later clarifying actual trader losses represented just 5% to 15% of that headline figure, translating to between $950 million and $2.85 billion in real losses according to Kaia DLT Foundation chairman Sam Seo. Binance provided $283 million in compensation to affected users, maintaining that its systems functioned as intended during what it described as extreme market conditions.
South Korean Market Expansion represents Binance's second major strategic move. The exchange announced plans to complete repayments to users of the troubled Gopax GoFi service within the year, followed by an aggressive campaign to become South Korea's leading cryptocurrency platform. This initiative directly challenges the current market dominance of local incumbents Upbit (with ~80% market share) and Bithumb (~15%).
SB Seker, Binance's Head of Asia Pacific, outlined a clear two-phase strategy. The immediate priority remains the full repayment of users affected by the GoFi service freeze, which occurred in late 2022 when partner Genesis Global Capital halted withdrawals. Following this creditor-focused mission, Binance will implement its global technological infrastructure and security protocols at Gopax, then expand into new business verticals including stablecoins, real-world asset (RWA) tokenization, and institutional investor services.
The repayment plan involves a dedicated wallet holding 11 different digital assets, including substantial quantities of major cryptocurrencies: 775.11 Bitcoin (BTC), 5,766.62 Ethereum (ETH), and 706,184 USD Coin (USDC). Binance has committed to repaying users in-kind, meaning customers will receive the original quantity of their crypto assets, not the equivalent value in Korean won (KRW).
Binance faces significant regulatory challenges in South Korea, which maintains one of the world's most rigorous frameworks for cryptocurrency exchanges, including strict real-name bank account verification and laws limiting exchanges' exposure to their own tokens. The company's experience with global compliance frameworks ostensibly prepares it for this challenge, though analysts note that local incumbents like Upbit have deeply entrenched relationships with regulators and Korean financial institutions.
In its open letter accompanying the SAFU announcement, Binance detailed its 2025 achievements, noting it recovered $48 million in misdeposited assets across 38,648 cases, prevented $6.69 billion in potential scam losses by assisting 5.4 million users, and collaborated with global law enforcement to combat illegal activities involving $131 million. The exchange maintained proof-of-reserves covering approximately $162.8 billion across 45 crypto assets while listing projects across 21 public blockchains.
