Binance Is Protected by a $1 Billion War Chest

<p>Binance has dedicated $1 billion to its insurance fund following a wave of multimillion-dollar cryptocurrency exchange breaches.</p> <p>Binance has disclosed the fund's wallet addresses in an effort to increase openness.</p> <p>The Binance Secure Asset Fund now exceeds $1 billion in size.</p> <p>Binance is taking significant precautions to safeguard itself from a breach.</p> <p>The world's largest cryptocurrency exchange announced that its Secure Asset Fund, or SAFU, had reached $1 billion in size. SAFU was founded in 2018 as a means of ensuring the exchange's users' protection. The firm initially contributed 10% of all trading costs to the fund but recently split it into two wallets.</p> <p>Binance revealed the two wallet addresses in an effort to increase openness, as the coin was worth $1 billion at its Jan. 29 launch price. Currently, the fund has 7,952 Bitcoin, 1,036,269 Binance Coin, and 300 million USD-pegged Binance Coin. Although around 30% of the fund is dollar-denominated, its value varies in response to market conditions due to the volatility of Bitcoin and Binance Coin.</p> <p>Changpeng Zhao, CEO of Binance, discussed the fund's ten-figure valuation in a statement. According to him,</p> <p>"At Binance, we've always maintained the mantra 'funds are safe,' and the Binance Secure Asset Fund's current size serves as an effective safeguard as well as protection for consumers from such improbable concerns."</p> <p>The update comes in the aftermath of a spate of significant hacks and security breaches on cryptocurrency exchanges. Hackers routinely target platforms that trade cryptocurrencies such as Bitcoin and Ethereum by getting access to Internet-based hot wallets, leaving users stranded while exchanges cope with the aftermath. Typically, exchanges bear the brunt of such attacks in order to protect users' cash.</p> <p>Crypto.com lost approximately $34 million earlier this month when its exchange was breached by hackers. It halted withdrawals the following day before announcing the incident th