Is Binance Safe in 2025? A Complete Look at Its Security, Risks and Protections

Interest in centralized crypto exchanges is on the rise in 2025, amidst an intensifying global digital assets adoption. However, the expansion of the ecosystem also translates into higher risks related to crypto wallets, with potential attacks from bad actors.

This is the main reason why regulating the industry is a necessary step towards fostering a safe, yet continually developing ecosystem.

Centralized crypto exchanges represent regulated businesses that allow buying, selling, and trading of digital assets in a safe environment.

Binance is currently the biggest and most important crypto exchange in the world, with over 270 million registered users, reflecting the growing trust in the platform.

The exchange is available in over 100 countries, including the US, has the highest trading volume in the ecosystem, and over $142 billion in total assets. But is Binance safe to use?

This Binance safety review aims to answer whether Binance is safe to use in 2025, while also addressing potential risks, past incidents, and the security measures set in place by Binance to prevent unfortunate events.

Binance Safety Review – Overview of Its Security Infrastructure

Binance is one of the safest crypto exchanges in the world, and the statement is supported by its continually growing number of users who trust the platform.

As the biggest and most important centralized digital assets platform, Binance has multiple complex safety and security measures set in place to protect its users.

Here are the main security elements that make Binance a safe platform to store and trade crypto.

1. SAFU Fund – Binance’s Key Safety Feature

Binance’s SAFU stands for Secure Asset Fund for Users. This is an insurance fund that was established by the crypto exchange in July, 2018 to boost Binance’s safety and prevent:

• Security breaches
• Hacks
• Other unforeseen events

The fund was created to highlight Binance’s commitment to user security and demonstrates a proactive approach to managing potential risks in the crypto industry.

Binance SAFU is valued a $1 billion, based on the official exchange reports, and the exchange continually monitors its size to ensure that it remains adequate for top user protection.

The exchange allocates 10% of all trading fees earned on the platform to SAFU.

Types of Losses Covered by SAFU

SAFU covers the following loss types:

• Losses sustained by users due to a compromise of Binance account login credentials
• Vulnerability/deficiency in Binance’s systems/security protocols
• Other types of losses Binance decides are eligible for recovery

Binance SAFU – Name Origin

“Funds are safe” was a phrase regularly used by Binance’s founder, Changpeng Zhao. He first tweeted it during an unscheduled maintenance of the exchange to ensure that users are aware of the fact that their funds are safe.

In 2018, a content creator called Bizonacci uploaded a video via YouTube titled, “Funds Are Safu” and this phrase rapidly became a meme, leading the community to use this phrase ever since.

2. Proof of Reserves Boosts Binance Safety

Binance’s security is also mirrored by the exchange’s transparency towards users, which increases trust, while being open about its reserves via the Proof of Reserves (PoR) system.

Binance’s PoR especially refers to assets currently held in custody for users.

The exchange’s official PoR shows that user assets are fully backed at least 1:1.

For instance, according to the exchange’s PoR, Binance’s BTC ratio is almost 101%, USDT ratio is over 104%, ETH ratio is over 100%, while BNB ratio is over 111%.

3. Binance Security: Wallets, Compliance Systems, Risk Teams

Our Binance safety review reveals that the crypto exchange holds user assets in cold wallets for higher security and details data about internal risk teams, compliance systems, and incident response protocols.

Hot Wallets vs Cold Wallets

A hot wallet refers to crypto wallets connected to the Internet, which make digital asset transfers instantly. Cold wallets, or hardware wallets like Ledger and others, are not connected to the Internet, keeping your funds safe from potential hacks.

Binance keeps user funds in cold wallets and uses hot wallets to make fast transactions.

For instance, when you want to withdraw funds from the exchange, Binance will send the funds to the hot wallet first, and then it will transfer them to the final address. The process protects user funds, prevents errors from happening during withdrawal, and protects the user’s address details.

Binance Safety First – Internal Risk Teams, Compliance Systems

Binance has been expanding its compliance and risk teams, focusing on quantity and quality of new hires to meet the necessary demands for offering users the highest possible level of security.

At the end of 2024, the exchange had over 1,000 compliance staff and contractors.

Binance’s internal risk teams work closely with international law enforcement agencies to improve risk management standards and deliver to users an uncompromising dedication to security and compliance.

Prevention and Incident Response Protocols

To prevent and address incidents, Binance added the Risk Sniper channel, a new system for real-time alerts that spots high-risk addresses and links that offer customers a better means of accessing crypto safely. This channel provides alerts while serving as an educational platform offering data about scams and security.

Such tools enable you to identify and report new scams, arming users with “digital weapons” to remain protected in the face of potential threats.

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Binance Safety Review: Top Account-Level Security Features

Besides implementing multiple solutions for incident prevention and responsiveness, Binance account protection is strong due to strong account-level security features.

Its measures make Binance almost 100% safe for storing your crypto.

Here are the top account-level security features you can rely on via Binance:

• Two-Factor Authentication (2FA) – 2FA (including verification via e-mail, phone app, and authenticators), prevents bad actors from hacking your account and stealing funds.
• Withdrawals address whitelisting – Restricting transactions to a predefined set of addresses, while allowing certain verified addresses for fund withdrawals
• Anti-phishing codes – A unique set of characters adding an extra layer of security for your Binance account, helping you prevent phishing attempts
• Device management – Manages your log-ins on the exchange from various devices
• Identity verification via KYC – Requiring simple/advanced KYC verification allows Binance to know its customers and prevent bad actors from joining the platform and harming honest users.

Binance Past Security Incidents and Response

The most notable security incident targeting Binance took place on May 7, 2019, when hackers were able to steal 7,000 Bitcoins in a single transaction.

According to Binance’s official notes, a large-scale security breach took place on that day, and hackers were able to obtain a large number of user API keys, 2FA codes, and potentially other information as well, via various techniques including phishing, viruses, and other attacks.

Binance’s security breach impacted only the exchange’s Bitcoin hot wallet, which contained approximately 2% of the total BTC holdings at the time. All the exchange’s other wallets were secure and unharmed.

The hackers patiently waited and executed well-orchestrated actions via multiple seemingly independent accounts at the most convenient time. Their transaction was structured in a way that passed the exchange’s security checks, and Binance was not able to block the withdrawal before it was executed.

Once executed, the withdrawal triggered various alarms in the exchange’s system, leading to the stopping of all other withdrawals after the incident.

Following the breach, Binance used its SAFU fund described above in our Binance safety review, and no user funds were affected due to its security measures, according to an official note by CZ.

Other minor breaches included the cyberattack that took place on October 4, 2022, which resulted in the theft of about 2 million BNB tokens for over $570 million in fiat.

However, since these past incidents, Binance has strengthened its safety via various measures that have been implemented by the exchange.

How Safe is Binance – Top Security Measures

Here are the top measures that make Binance a safe crypto exchange:

• Implementation of new security measures to prevent account misuse
• Detection and prevention of user behavior that allows bad actors to gain unfair advantages
• Suspension or termination of bad actors’ user accounts to prevent damaging the exchange’s reputation
• Enhancing the monitoring of all account-related activities
• Engaging the community in the quest to catch bad actors by urging users to report suspicious activity and offering rewards for verified cases
• Assisting law enforcement during investigations following various incidents
• Offering responses and solutions post crypto attacks in the industry
• Assisting other crypto exchanges after unfortunate events

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Binance Safety – Regulatory Compliance and Global Scrutiny

Binance is currently available in over 100 countries, offering some of its products and services in the US as well. The crypto exchange secured 21 global licenses.

However, due to regulatory scrutiny, the crypto exchange is still not available in multiple regions of the world, including Canada, the Netherlands, Cuba, the Democratic People’s Republic of North Korea (“DPRK”), Iran, Syria, the Crimea region, and any non-government-controlled areas of Ukraine.

Regulatory risks involving the exchange can be best seen in the US SEC’s suit against the exchange and its founder, CZ, back in June 2023. The US regulator accused the exchange of artificially inflating trading volumes, diverting customer funds, and misleading investors about its surveillance.

However, since then, after CZ stepped down and spent four months in jail, now, Binance, under its new leadership of CEO Richard Teng, re-opened US operations, and strengthened its compliance and regulatory measures, making it the safest option for users.

The issues between Binance and the US have come to an end, and as a result, World Liberty Financial (WLFI), the Trump family’s crypto project, has been collaborating with CZ. The founders of WLFI met with CZ in Abu Dhabi in April to discuss the growing global crypto adoption, setting new standards, and advancing crypto to the next level.

If some Binance users temporarily lost their trust in the crypto exchange, following the SEC’s lawsuit and CZ’s imprisonment, this trust has been regained after the exchange strengthened its compliance and regulatory measures.

Now, Binance’s safety is best mirrored by the growing user base, which has surpassed 270 million.

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User Responsibility – A Contributing Factor to Binance Safety

Binance’s safety depends not only on the crypto exchange’s compliance with regulations and its strong safety-related measures, but also on users who have a strong responsibility to comply with the exchange’s regulations in order to keep their accounts and funds safe.

Here are a few tips that you can use to remain safe while using Binance:

• Use strong passwords
• Enable 2FA
• Avoid phishing links
• Monitor your login history and device access
• Stay updated with Binance’s security-related measures and advice

Binance offers all the necessary tools for keeping you safe, but users also have to exercise high caution and remain updated with the exchange’s advice and useful information for having the safest experience on the platform.

Binance Safety Measures vs Other Crypto Exchanges

Centralized crypto exchanges are continually making efforts towards regulation and compliance, and Binance is one of the safest bets for you.

Binance’s safety and transparency reach peak levels compared to other crypto exchanges.

However, most centralized exchanges, including Bybit, Coinbase, Kraken, and others, also provide reliable platforms for users with strong security and safety measures set in place, but based on our Binance review, the exchange remains the leader in the industry, continually making efforts to offer the highest security and the best products and services for users.

The platform is highly secure while providing transparent information regarding transaction fees for users, along with increased trust due to its SAFU fund.

Pros and Cons of Using Binance – A Safety and Security Perspective

Here are the most important pros and cons regarding Binance’s safety for its users:

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Conclusion: Is Binance Safe to Use in 2025?

Based on our Binance safety review, the crypto exchange is safe for users in 2025. Following past incidents, Binance has made huge efforts towards securing its platform and creating a safe environment for users to benefit from its products and services.

Starting from its onboarding process, which includes regulatory measures such as KYC and enhanced account verification, to its powerful algorithms analyzing potential threats, and its SAFU fund, Binance’s security measures and its ongoing collaboration with global law enforcement highlight its high standards regarding user safety.

Also, the exchange’s PoR contributes to building powerful user trust, mirrored by its growing user base, boosting crypto adoption worldwide while fostering a secure and safe ecosystem for users, leading other crypto companies by example.

Despite previous attacks and issues related to the exchange, Binance’s culture, resilience, efforts, and accent on user benefits have built its global reputation as the best and most secure crypto exchange in the world.

However, we cannot finish this Binance safety review without highlighting the importance of users complying with the crypto exchange’s industry-leading security measures and taking personal responsibility for their crypto accounts and trading on the platform.

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Our Final Verdict on Binance Safety

As a final verdict, the question of whether if Binance is safe to use in 2025 has a definitive positive answer. If you’re looking for a complex trading experience in a safe environment, there’s no better place than Binance to start your crypto journey.

Binance’s safety is powerful enough to support innovation in a secure ecosystem.

Satoshi Nakamoto created Bitcoin with decentralization in mind to offer freedom and an alternative to the traditional financial system that has its flaws. Binance, a centralized crypto exchange, blends innovative blockchain technology with the best features that centralization has to offer – safety and security – to allow you to safely trade Bitcoin and other digital assets in a secure environment.

Unfortunately, in terms of crypto exchanges, and in a world that develops innovation at an exponential pace, the idea of freedom can be misunderstood, taken for granted, and abused by bad actors who take advantage of honest users, and decentralization can become too risky.

Higher risks keep the door open for bad actors, while cyber attacks and a lack of regulation, which translates into a sort of digital anarchy, end up choking the innovative technologies.

Binance becomes the point of intersection between traditional values that keep people safe in a regulated environment and innovation brought forth by the evolving crypto industry. Binance takes the gift that Satoshi Nakamoto created for the world and makes sure that people can safely use it, and no one abuses its creator’s precious legacy.

Binance Safety: FAQ

Is Binance Safer Than Other Crypto Exchanges?

Based on our Binance safety review, considering all its security measures analyzed in this article, Binance is currently one of the best crypto exchanges that you can use in 2025.

Has Binance Ever Been Hacked?

Almost nothing in this world is 100% secure, and Binance is no exception, although the crypto exchange continues its ongoing efforts to remain the safest crypto platform worldwide. Binance has previously been attacked by bad actors, with the most notable events taking place in 2019 and 2022.

However, since these incidents we’ve highlighted in this Binance safety review, the crypto exchange has implemented strict security measures which are shielding you from harm while teaching you how to best use the digital “weapons” of prevention and incident reporting.

What is the Binance SAFU Fund?

The Binance SAFU fund represents an emergency fund that the crypto exchange uses in case of unforeseen disaster. The fund is valued at $1 billion, and it was created in 2018 with Binance user safety as the exchange’s top priority.

Can I Trust Binance With Large Amounts of Crypto?

Binance is safe enough for traders to securely hold and trade large amounts of crypto, especially considering the fac that the exchange uses cold wallets for storing digital assets, which translates into top security for funds and a powerful shield from attacks.

How Can I Make My Binance Account More Secure?

You can make your account on Binance safer by following the complete and complex measures that the exchange has set in place. You can complete advanced KYC verification, set up a 2FA, and protect your devices, while also periodically checking your log-ins on the Binance web platform and mobile app.