A few years after launching the Secure Asset Fund for Users (SAFU) initiative, Binance has updated it, and its value rose to $1 billion. This comes amid the growing number of hacks and security breaches in the cryptocurrency industry.
- The announcement from the company described the product as an “emergency insurance fund” established by the exchange in the middle of 2018 to “protect users’ interests.”
- Binance started allocating a certain percentage from its trading fees to grow the fund.
“Transparency is an important element of building trust, which is why we are publishing our insurance fund wallet addresses. We call on all centralized exchanges to do the same as it will benefit the entire ecosystem and demonstrate to governments, regulators, and important stakeholders our collective commitment to uphold trust, integrity, and transparency in the crypto ecosystem.” – commented Binance CEO, Changpeng Zhao.
- The statement also explained that the exchange will continue to monitor the size and development of the fund to ensure that it remains “adequate to protect users’ interest.”
- While decentralized exchanges are typically the most preferred platforms for hackers to exploit, centralized trading venues have also seen their fair share of security breaches.
- CryptoCom was the latest example, with attackers swiping $34 million worth of digital assets. However, the company said it had reimbursed all its users for their losses.