Binance’s insurance fund against crypto hacks hits $1B valuation

Binance, the world’s largest exchange by trading volume, is no stranger to regulatory scrutiny. In a move to sooth relations with regulators and protect its users’ interests, the exchange has built up a $1 billion war chest to counter any unforeseen hacks the exchange might encounter.

Binance created the emergency insurance fund, called the Secure Asset Fund for Users or SAFU, in 2018 and allocated a portion of trading fees to provide insurance for potential security breaches, the exchange said in the press release.

In addition, Binance has also revealed the wallet addresses of the funds, which are BNB, BUSD, and BTC, in an attempt to encourage transparency.

Changpeng Zhao (CZ), founder and CEO of Binance, said in a statement:

“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. Coupled with our state-of-the-art security, we are confident that our user’s interests are well-protected.”

CZ further called upon other exchanges to take on a similar measure that will benefit the entire ecosystem and illustrate their efforts in upholding “trust, integrity, and transparency” to governments and regulators.

Binance, like several other exchanges, has been no stranger to crypto-related hacks. It suffered a massive hack after cyber-attackers stole $40 million worth of Bitcoins from one of its hot wallets. At the time, the exchange noted that the hacker used multiple methods to execute the hack, including phishing, viruses, and other attacks.

The post Binance’s insurance fund against crypto hacks hits $1B valuation appeared first on Our Bitcoin News.