The world’s largest cryptocurrency exchange, Binance, has built a $1 billion fund to cover potential hacking attacks. The company announced the new fund through a press release shared on Twitter.
USD $1 billion buffer fund
Binance indicated that the fund, called the Secure Asset Fund for Users (SAFU), is part of a strategy that the exchange has been carrying out since 2018, through the allocation of capital to an emergency portfolio. The company said in the statement that it has been allocating 10% of all trading fees to grow the fund.
The fund has reached a valuation of USD $1,000 million, according to the company. Binance shared wallet addresses, allowing users to check money. He also added that he will continue to monitor the SAFU to ensure it is adequately sized to protect and respond to user needs.
Binance CEO Changpeng Zhao invited other centralized exchanges to push for similar initiatives “as it will benefit the entire ecosystem and demonstrate to governments, regulators, and stakeholders our collective commitment to upholding trust, integrity, and transparency in the crypto ecosystem. Zhao also added to this in a memo quoted by Bloomberg.
At Binance we always said that ‘funds are safe’, and today the size of Binance’s SAFU acts as an effective safeguard as well as protection for users against such unlikely issues.
Binance’s latest efforts come amid a wave of hacks on cryptocurrency platforms. A few weeks ago Crypto.com, the third largest exchange in the world by trading volume, suffered an attack of more than USD $30 million. At the end of last year, the AscendEX and BitMart exchanges were also hacked for more than $250 million combined.