SAFU (Secure Asset Fund for Users)

SAFU originally referred to Binance's "Secure Asset Fund for Users," an emergency insurance fund established in 2018 using 10% of trading fees to protect users in extreme scenarios, but has evolved into general crypto slang meaning "funds are safe" or asserting that assets are secure from theft, loss, or misappropriation.

While Binance's actual SAFU fund represents legitimate user protection mechanism, the term's broader usage frequently appears in fraudulent contexts where projects falsely claim "funds are SAFU" despite lacking proper security audits, custody controls, or insurance mechanisms. Scammers deliberately invoke SAFU to create false sense of security, discourage withdrawal attempts, and maintain confidence while preparing rug pulls or exit scams.

Red flag contexts include SAFU claims from projects without verifiable security audits or proof of reserves, SAFU reassurances appearing after security concerns or withdrawal delays emerge, SAFU used to dismiss requests for transparency about custody arrangements, SAFU from anonymous teams operating unaudited smart contracts, and SAFU combined with pressure to keep funds deposited rather than withdraw to self-custody. Compliance professionals should recognize SAFU claims as red flag requiring verification through independent security audits, proof of reserves cryptographic verification, insurance policy documentation, and custody arrangement transparency. Notable cases include projects claiming SAFU immediately before rug pulls, exchanges asserting SAFU while experiencing liquidity crises, and DeFi protocols maintaining SAFU messaging despite known smart contract vulnerabilities. Investigators should document false SAFU representations as evidence of fraud when projects claiming security subsequently experience losses, hacks, or intentional theft.