Binance Announces SAFU Fund Has Reached $1 Billion

Binance, the world’s largest exchange by volume, has revealed a significant milestone about its SAFU fund. The fund’s name is ‘Secure Asset Fond for Users’ and it has now reached one billion dollars to pay its users for any hack or other event that could affect their funds. Two wallet addresses were also revealed by the exchange so that the public and users can track the movements of these funds.

According to the press release, this information seems to have been made in order to improve the transparency exchange for governments around the globe. It also suggested that other crypto-exchanges follow their lead. Binance said that this is the case:

Binance asks all centralized exchanges for their addresses of insurance funds. This will be a benefit to the whole ecosystem and show regulators, governments and other important stakeholders that we are committed to trust, integrity, and transparency within the crypto ecosystem.

Origin of SAFU and Past Uses

The SAFU fund was created in 2018 after the exchange suffered several trading outages due to irregular trading activity. To protect users from major hacks, the fund was created. The exchange stated at the time that it would donate 10% of trading fees to the fund and that the funds would be kept in a separate cold wallet.

SAFU has been used to help victims of hacking in numerous cases. In May 2018, hackers stole more than 7,074 from the exchange. This was one of the most well-known instances. Changpeng Zhao, Binance’s CEO, said that the company was looking at a reorganization of the BTC chains but that decided not to do so. The fund was also used to pay clients for Cover finance infinite minting hack in December.

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