Binance
Binance is a cryptocurrency exchange founded in July 2017 by Changpeng Zhao (CZ) and, by traded volume, one of the largest in the world. It runs an unusually broad platform — spot, margin, perpetual futures, options, staking, savings, a launchpad and its own BNB Chain — around the BNB token. It has no single official headquarters, and its global site is separate from the US-only Binance.US. In November 2023 it settled criminal and civil cases with US authorities for roughly $4.3 billion, a fact that sits at the centre of any honest look at the company today.
- Founded
- July 2017 by Changpeng Zhao (CZ)2017 · source
- Headquarters
- No single official headquarters; operates as a global group of entities
- Native token
- BNB, the fee-discount and gas token of BNB Chain
- US settlement
- ~$4.3B settlement with the DOJ, CFTC, FinCEN and OFAC; CZ pleaded guilty and stepped down as CEO2023-11-21 · source
- Custody model
- Custodial: holds customer crypto; publishes proof-of-reserves attestations
Is Binance safe?
Binance's safety record has two very different halves. On operational security, its most-cited test came in May 2019, when attackers drained about 7,000 BTC (around $40M) from a hot wallet using stolen API keys and 2FA codes; Binance absorbed the entire loss from its SAFU insurance fund, so no customer lost money. It keeps most assets in cold storage and publishes proof-of-reserves attestations that let anyone check balances are backed.
The other half is legal, and it is unusually heavy. In November 2023 Binance agreed to a roughly $4.3 billion settlement with US authorities over anti-money-laundering and sanctions failures, CZ pleaded guilty and resigned as CEO, and the company accepted an independent compliance monitor. That does not mean your coins are at risk of theft, but it is central to the company's history and to why it is restricted or absent in a number of jurisdictions. As with any custodial exchange, Binance also holds your keys and your individual account can be phished.
Binance.US vs Binance
These are two separate businesses, and the distinction matters for anyone in the United States. The global Binance.com is not available to US residents, who instead use Binance.US, operated by BAM Trading Services and registered with FinCEN as a money services business. Binance.US licenses the brand and technology but has its own corporate and management structure.
The practical differences are large. Binance.US lists a far smaller set of coins than the global platform and offers a narrower product range — spot, staking and swaps rather than the full global suite of futures, options, savings and launchpad. USD banking services are also unavailable to residents of several states. If you are outside the US reading about "Binance" features online, many of them simply do not exist on the US entity.
Binance fees
Binance's spot trading fee starts at 0.1% for both maker and taker orders, which is low for a large exchange. Holding BNB and enabling "pay fees with BNB" cuts that by 25%, to about 0.075%, and higher 30-day volume drops both sides further through the VIP tiers. Perpetual futures are cheaper still, starting near 0.02% maker and 0.05% taker.
The BNB discount is what makes Binance's headline pricing so aggressive, so if you trade regularly it is worth keeping a small BNB balance purely to pay fees. On top of trading fees, withdrawing crypto carries the network fee of the chain you use, which Binance passes through.
Incident record
On 7 May 2019 attackers used stolen API keys, 2FA codes and other data to withdraw about 7,000 BTC (roughly $40M) from a Binance hot wallet in a single transaction. The affected wallet held around 2% of Binance's holdings. Binance covered the full loss from its Secure Asset Fund for Users (SAFU), so no customer funds were lost.
In our ratings
Where we score Binance against its peers on open data. The number lives there, not here.
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Frequently asked
Is Binance safe to use?+
Binance keeps most assets in cold storage, publishes proof-of-reserves attestations, and covered its 2019 hot-wallet hack in full from its SAFU fund so no users lost money. The bigger caveats are legal — a ~$4.3B US settlement in 2023 — and the usual custodial risks: it holds your keys and your account can be phished.
Was Binance hacked?+
Yes, in May 2019 attackers took about 7,000 BTC (~$40M) from a hot wallet. Binance reimbursed the loss entirely from its SAFU insurance fund, so no customer funds were lost. Its cold storage has not been drained.
What was the Binance $4.3 billion settlement?+
In November 2023 Binance settled criminal and civil cases with the US DOJ, CFTC, FinCEN and OFAC for roughly $4.3 billion over anti-money-laundering and sanctions violations. Founder CZ pleaded guilty, paid a personal fine and stepped down as CEO, and the company accepted an independent compliance monitor.
What is the difference between Binance and Binance.US?+
They are separate companies. US residents cannot use global Binance.com and must use Binance.US, run by BAM Trading Services, which lists far fewer coins and offers a narrower product set. USD services are also unavailable in several US states.
How much are Binance's fees?+
Spot trading starts at 0.1% maker and taker, dropping to about 0.075% if you pay fees with BNB, and lower again at higher volume. Perpetual futures start near 0.02% maker and 0.05% taker, plus network fees on withdrawals.
What changed
- 2026-09-28Profile created: founding and BNB facts, the 2023 US settlement, the Binance.US distinction, fees, and the 2019 SAFU-covered hack with a confirmed verdict.