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.
