- Binance announced a $1 billion Bitcoin purchase from its SAFU fund in a bid to restore confidence.
- The move follows a $19 billion liquidation crisis on Oct. 10, 2025, triggered by geopolitical tensions.
- Despite offering hundreds of millions in restitution, Binance faces ongoing skepticism and legal challenges.
- Bitcoin remains down 32% from its price at the start of the October market crash.
On January 27, 2026, cryptocurrency exchange Binance announced a $1 billion bitcoin purchase from its SAFU fund. Consequently, the swap from stablecoin reserves aimed to repair market confidence shattered three months earlier.
On October 10, 2025, Donald Trump‘s tariff threat against China sparked a panic. This triggered a market crash where bitcoin tanked 14% and other assets experienced even more severe sell-offs.
Rumors quickly circulated that Binance or founder CZ’s funds secretly bought unfairly cheap coins during the chaos. The exchange never confirmed these allegations, but community sentiment turned sharply negative.
Skeptics remain unconvinced that markets have been made whole. Today’s $1 billion buy also seems minimal against $80 billion in daily trading volume.
Critics blamed Binance for a significant portion of the $19 billion in industry-wide liquidations. A viral post from ElonTrades pointed to oracle and margin account flaws.
The exchange later paid $283 million in restitution to certain affected users. It also committed $100 million in loans and offered $300 million in vouchers.
Furthermore, CZ announced another $45 million payout to BNB memecoin investors. However, lawyers immediately began organizing class action lawsuits for dissatisfied victims.
The head of OKX called the damage to Binance’s reputation “real and lasting.” Meanwhile, Bitcoin’s price remains 32% lower than its pre-crash level, underscoring the market’s fragile recovery.
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