SAFU originates from a meme uploaded by Bizonacci. It incorporated Binance’s CEO, Changpeng Zhao (CZ), saying “funds are safe” during unscheduled platform maintenance.
The video went viral within the cryptocurrency sphere. In response, Binance has established the Secure Asset Fund for Users (SAFU), an emergency insurance fund that’s funded by 10% of trading fees. These funds are stored in a separate cold wallet. The idea is that the SAFU may cover the loss of user funds in extreme cases, offering an additional blanket of protection for Binance users. This is why you might often hear the phrase “funds are safu.”