Binance User Protection Fund Hit $1 Billion In Value: Report

The Binance user protection fund hit $1 billion in value and the exchange started this SAFU fund in 2018 allocating 10% of the trading fees so let’s read more in today’s latest binance news.

Binance is the world’s leading crypto exchange by trading volume which announced a secure asset fund for users and now it has reached $1 billion in value. The Binance user protection fund was set up in 2018 to protect the users’ interests. The exchange committed a portion of the trading fees towards SAFU and started to allocate 10% towards the funds. The exchange also revealed the two wallet addresses where the funds were held in order to ensure transparency and the two wallets contain a billion-dollar worth of crypto in BNB, BTC, and BUSD.

Changpeng Zhao, the CEO of the exchange urged other platforms to follow on their way and to reveal more details of their emergency insurance funds as well so he said that doing this will make them more transparent and will help them showcase their commitment to the regulators. A binance spokesperson revealed that the SAFU is here to protect the users’ interest and funds which are used at Binance’s discretion and he went on today that the SAFU is focused on but not limited to the exchange alone:

“The purpose of SAFU is to protect Binance users and we reserve the right to cover issues outside of Binance.com if required.”

In the absence of clear regulations, the crypto investors and traders in most countries are dependent on crypto exchanges’ security measures to protect their funds. However, some of the most notable platforms were hacked despite the promised security with millions in user’ funds getting lost so the role of the user insurance funds is very critical. While the decentralized exchanges have been the main target of hackers for the ease of heist, this doesn’t make these centralized exchanges safer. Earlier this month we saw crypto.com getting hacked out of $33 million when a hacker drained funds from 483 users’ accounts. The platform later claimed it had compensated the users that lost their funds.

As recently reported, Crypto exchange Binance restricted a total of 281 personal accounts that belong to Nigerian users as the company seeks to satisfy international money laundering standards. The CEO of the exchange Chanpeng Zhao told the customers in a letter that the decision was made to ensure user safety but also at the request of international law enforcement authorities.