Binance Announces SAFU Fund Has Reached $1 Billion

Binance has introduced one in every of its trademark options, the SAFU fund, has reached a milestone in its growth. The SAFU fund, an acronym that stands for “Secure Asset Fund for Users,” has reached the quantity of 1 billion {dollars}, securing the funds of customers in case of a hacking emergency. The trade, which is likely one of the pioneers within the institution of such constructions, invited different exchanges to additionally take comparable measures.

SAFU Reaches $1B, Transparency Highlighted

Binance, the main trade in quantity traded, has announced a milestone relating to its SAFU fund. The fund, whose title stands for “Secure Asset Fund for Users,” has reached the quantity of 1 billion {dollars} to reimburse its customers in case of a hack or occasion affecting customers’ funds. The trade additionally disclosed two pockets addresses the place customers of the trade and the general public can hint the actions of those funds.

As per the press launch asserting this data, this disclosure appears to be directed to extend the transparency of the trade for governments all world wide. The trade additionally beneficial different crypto exchanges comply with swimsuit. In this regard, Binance acknowledged:

Binance calls on all centralized exchanges to publish their insurance coverage fund pockets addresses, as it’s going to profit all the ecosystem and reveal to governments, regulators and vital stakeholders our collective dedication to uphold belief, integrity and transparency within the crypto ecosystem.

SAFU Origin and Previous Uses

The origin of the SAFU fund goes again to the yr 2018 when the trade faced a sequence of buying and selling outages associated to irregular buying and selling exercise. This led to the institution of the aforementioned fund to guard customers in case of a serious hack. At the time, the trade introduced it might allocate 10% of all of the buying and selling charges obtained to this fund, and that these funds can be saved in a separate chilly pockets.

SAFU has already been utilized in a number of situations to reimburse victims of hacks. One of essentially the most well-known situations was again in May 2018, when a large-scale information breach allowed hackers to steal greater than 7,074 BTC from the trade. During this occasion, Changpeng Zhao, CEO of Binance, famously talked about the corporate was contemplating a reorg of the BTC chain however declined to do it later. Most just lately, the fund was additionally used to compensate shoppers for the Cover finance infinite minting hack that occurred in December.

What do you consider the milestone introduced for the SAFU fund? Tell us within the feedback part beneath.