Binance Creates $1 Billion Insurance Fund Following String of Crypto Hacks

Binance Holdings Ltd has established an insurance fund specifically for reimbursing users targeted by cryptocurrency hacks.

On Monday, Binance announced it has completed earmarking funds towards an emergency portfolio that can be used to reimburse traders falling victim to cyberattacks on virtual currency trading platforms. In 2018, Binance began allocating 10% of all trading fees towards the insurance portfolio, and has now consolidated all of the money into the Binance Secure Asset Fund for Users (SAFU).

According to its opening price as of January 29, the SAFU was valued at around $1 billion, and is expected to fluctuate is response to changes in the market. “At Binance we always said ‘funds are safe,’ and today the Binance Secure Asset Fund size acts as an effective safeguard as well as protection for users against such unlikely issues,” said Binance CEO Changpeng Zhao.

Cryptocurrency users have been increasingly expressing concerns over a string of cyberattacks, which have wiped out billions of dollars in digital tokens as of recent. The security breaches have caused grievances for trading platforms and investors alike, as companies were forced to temporarily halt their services in order to correct network vulnerabilities.


Information for this briefing was found via Binance. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

Inside FTX’s $1.8 Billion Lawsuit Against Binance Amid Crypto Collapse Fallout

In a lawsuit filed in Delaware’s bankruptcy court, the liquidators of the now-bankrupt cryptocurrency exchange...

Tuesday, November 12, 2024, 12:46:00 PM

Binance Australia Customers Face Withdrawal, Deposit Disruptions After Third-Party Payments Provider Cuts Services

Binance Australia, the local division of the world’s leading cryptocurrency exchange, announced on Thursday that...

Saturday, May 20, 2023, 07:22:00 AM

Kevin O’Leary Is Still Trying To Sell The ‘It’s Binance’s Fault’ Narrative

While the fallen crypto exchange FTX and its disgraced former CEO Sam Bankman-Fried are serving...

Thursday, December 15, 2022, 02:00:00 PM

DeFi Platform Poly Network Hacked, More Than $600 Million in Cryptocurrencies Stolen

Hackers attacked DeFi platform Poly Network on Tuesday, stealing more than $600 million in various...

Wednesday, August 11, 2021, 02:37:00 PM

Binance Halts All USD Transfers As It Searches For New Banking Partner

Crypto exchange Binance is suspending all bank transfers in US dollars beginning on February 8....

Monday, February 6, 2023, 02:59:00 PM