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Binance's Secure Asset Fund for Users (SAFU) valued at $1B

Updated: Jul 25, 2024
Published: Feb 1, 2022
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A few years after launching its Secure Asset Fund for Users (SAFU) initiative, Binance has updated it, and its value has risen to $1 billion.

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Binance has updated its insurance fund

The insurance fund was established in July 2018 to protect its users. Binance committed to pay a portion of the trading fee towards SAFU and began contributing 10% to the fund. The crypto exchange also announced the two wallet addresses where the funds are kept to ensure transparency. The two wallets hold $1 billion worth of cryptocurrencies in BUSD, BNB, and BTC.

Changpeng Zhao, the CEO of Binance, urged other crypto platforms to follow their lead and also disclose the details of their emergency insurance funds. He said this would make them more transparent and help them show their commitment to regulators.

Crypto exchanges are targeted by hackers

While decentralized exchanges tend to be the platforms of choice for hackers, centralized trading venues have their share of security breaches. Crypto.com was the most recent example, where attackers captured $34 million worth of digital assets. However, the company said that it had compensated all its users for their losses.

In the absence of clear regulations, crypto investors and traders in many countries have to rely solely on the security measures of crypto exchanges to protect their funds. These exchanges must ensure that they can compensate users who have lost their money.

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