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Binance Is Protected by a $1 Billion War Chest
Binance has dedicated $1 billion to its insurance fund following a wave of multimillion-dollar cryptocurrency exchange breaches.
Binance has disclosed the fund's wallet addresses in an effort to increase openness.
The Binance Secure Asset Fund now exceeds $1 billion in size.
Binance is taking significant precautions to safeguard itself from a breach.
The world's largest cryptocurrency exchange announced that its Secure Asset Fund, or SAFU, had reached $1 billion in size. SAFU was founded in 2018 as a means of ensuring the exchange's users' protection. The firm initially contributed 10% of all trading costs to the fund but recently split it into two wallets.
Binance revealed the two wallet addresses in an effort to increase openness, as the coin was worth $1 billion at its Jan. 29 launch price. Currently, the fund has 7,952 Bitcoin, 1,036,269 Binance Coin, and 300 million USD-pegged Binance Coin. Although around 30% of the fund is dollar-denominated, its value varies in response to market conditions due to the volatility of Bitcoin and Binance Coin.
Changpeng Zhao, CEO of Binance, discussed the fund's ten-figure valuation in a statement. According to him,
"At Binance, we've always maintained the mantra 'funds are safe,' and the Binance Secure Asset Fund's current size serves as an effective safeguard as well as protection for consumers from such improbable concerns."
The update comes in the aftermath of a spate of significant hacks and security breaches on cryptocurrency exchanges. Hackers routinely target platforms that trade cryptocurrencies such as Bitcoin and Ethereum by getting access to Internet-based hot wallets, leaving users stranded while exchanges cope with the aftermath. Typically, exchanges bear the brunt of such attacks in order to protect users' cash.
Crypto.com lost approximately $34 million earlier this month when its exchange was breached by hackers. It halted withdrawals the following day before announcing the incident three days later, however it did not provide details on how it occurred. Both BitMart and AscendEX had their hot wallets compromised last month, resulting in losses of $196 million and $76.7 million, respectively. In 2019, Binance itself was hacked for $40 million.
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By Crypto PiratesBinance has dedicated $1 billion to its insurance fund following a wave of multimillion-dollar cryptocurrency exchange breaches.
Binance has disclosed the fund's wallet addresses in an effort to increase openness.
The Binance Secure Asset Fund now exceeds $1 billion in size.
Binance is taking significant precautions to safeguard itself from a breach.
The world's largest cryptocurrency exchange announced that its Secure Asset Fund, or SAFU, had reached $1 billion in size. SAFU was founded in 2018 as a means of ensuring the exchange's users' protection. The firm initially contributed 10% of all trading costs to the fund but recently split it into two wallets.
Binance revealed the two wallet addresses in an effort to increase openness, as the coin was worth $1 billion at its Jan. 29 launch price. Currently, the fund has 7,952 Bitcoin, 1,036,269 Binance Coin, and 300 million USD-pegged Binance Coin. Although around 30% of the fund is dollar-denominated, its value varies in response to market conditions due to the volatility of Bitcoin and Binance Coin.
Changpeng Zhao, CEO of Binance, discussed the fund's ten-figure valuation in a statement. According to him,
"At Binance, we've always maintained the mantra 'funds are safe,' and the Binance Secure Asset Fund's current size serves as an effective safeguard as well as protection for consumers from such improbable concerns."
The update comes in the aftermath of a spate of significant hacks and security breaches on cryptocurrency exchanges. Hackers routinely target platforms that trade cryptocurrencies such as Bitcoin and Ethereum by getting access to Internet-based hot wallets, leaving users stranded while exchanges cope with the aftermath. Typically, exchanges bear the brunt of such attacks in order to protect users' cash.
Crypto.com lost approximately $34 million earlier this month when its exchange was breached by hackers. It halted withdrawals the following day before announcing the incident three days later, however it did not provide details on how it occurred. Both BitMart and AscendEX had their hot wallets compromised last month, resulting in losses of $196 million and $76.7 million, respectively. In 2019, Binance itself was hacked for $40 million.
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