What protections exist for Binance’s customers?

There does not appear to be any US governmental or regulatory entity that could force Binance or other troubled crypto companies to help customers.

SAN FRANCISCO - The staggering digital hack at Binance, where criminals made off with US$6.3 billion (S$8 billion) in digital coins in a breach that the company revealed on Oct 29, is a reminder that putting money into cryptocurrency still involves a fair bit of risk.

It has no real choice but to make people whole, lest its customers’ confidence sink even further than it has in the wake of such a large attack.

But there does not appear to be any US governmental or regulatory entity that could force Binance or other troubled crypto companies to help customers.

And minimal regulation is exactly what early crypto enthusiasts wanted, even as the Biden administration tried to rein in the industry before the Trump administration undid much of its work.

The hack affected the original Binance (Binance.com), which the company blocks US customers from using, though some probably do so anyway via virtual private networks.

There is also a small Binance.Us platform for US users in certain states, which was not part of the hack.

In an announcement on its website, the company said it would “cover all losses” using its own funds and its “secure asset fund for users” (SAFU).

The SAFU is an emergency fund that Binance set up on its own. “It is designed to reduce the potential impact on users if an extreme event does happen,” according to the company.

The price of bitcoin has fallen about 30% in 2026, though the company says it replenishes the fund if it falls below US$800 million in value.

“User funds are safe,” it added in its announcement. The company has suspended withdrawals for now.

Not many, though plenty of customers believe otherwise, since there has been automatic deposit insurance at banks for decades.