Leading cryptocurrency exchange Binance has built up a $1 billion-valued insurance fund for the benefit of its users following a rise in hacks and exploits across the crypto ecosystem.
The fund, titled ‘Secure Asset Fund for Users (SAFU)’, has now posted a $1 billion valuation on January 29th following its inception in July 2018. According to Binance, the exchange began setting capital aside for the fund following its establishment to grow the fund “to a sizable level” and help safeguard users’ when using their products.
Now, the exchange hopes to build upon its initial allocations and continue to monitor the balance of the fund to ensure users interests’ remain protected and of a top priorty.
The SAFU fund – an ode to CEO Changpeng ‘CZ’ Zhao’s infamous “funds are safu” tagline – comes to prominence at a time when hacks and exploits in the industry remain rife.
“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 Chief Executive Officer Changpeng “CZ” Zhao.
In recent weeks, crypto exchange crypto.com was hacked for an estimated $33.8m alongside fellow exchange Bitmart, which saw an estimated $200m in funds stolen. An eventful 2021 also saw over $1bn in funds hacked, stolen or exploited from an array of DeFi platforms and crypto exchanges.
Binance also led a rallying call to the modicum of centralised exchanges within the crypto ecosystem including FTX and Coinbase to publish their insurance fund wallet addresses, saying “it will benefit the entire ecosystem and demonstrate to governments and regulators our collective commitment to uphold trust, integrity and transparency in the crypto ecosystem.”
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