Saturday, March 2

Binance builds a $1 billion fund to respond to possible hacks – DiarioBitcoin

For Hannah Perez

Binance has a billion dollars in its SAFU fund. Meanwhile, more than 200 users in Nigeria have reported restricted accounts amid regulatory pressure.


The largest cryptocurrency exchange in the world, Binance, has built a billion dollar fund to cover potential hacking attacks. The company announced the new fund through a Press release shared on Twitter.

In other recent news from exchangeSome user account bans have been reported in Nigeria amid local regulations. The CEO of Binance explained this Monday the details of the measure.

USD $1 billion buffer fund

Binance indicated that the fund, called the Secure Assets Fund for Users (SAFU), is part of a strategy that the exchange has been carrying out since 2018, through the allocation of capital to an emergency portfolio. The company said in the statement that it has been allocating 10% of all trading fees to grow the fund.

The fund has reached a valuation of USD $1,000 million, according to the company. Binance shared wallet addresses, allowing users to check money. He also added that he will continue to monitor the SAFU to ensure it is adequately sized to protect and respond to user needs.

The CEO of Binance, Changpeng Zhao, invited other centralized exchanges to push similar initiativesas it will benefit the entire ecosystem and demonstrate to governments, regulators and stakeholders our collective commitment to uphold trust, integrity and transparency in the crypto ecosystem“. Zhao also added to this in a memorandum quoted by Bloomberg.

At Binance we always said that ‘funds are safe’, and today the size of Binance’s SAFU acts as an effective safeguard as well as protection for users against such unlikely issues..

The most recent efforts of Binance They come amid a wave of hacks on cryptocurrency platforms. A few weeks ago, the third largest exchange in the world by trade volume, suffered an attack of more than USD $30 million. At the end of last year, the exchanges AscendEX Y BitMart they were also pirated for over $250 million combined.

Over 200 users with restricted accounts in Nigeria

In other news from Binance, the CEO also spoke on Monday about the incidents that more than 200 Nigerian users have reported in relation to their platform accounts.

According to a report from Reuters, the exchange has restricted a total of 281 personal accounts belonging to users in Nigeria. In a paper Addressing the Nigerian crypto community, Zhao stated that the move was taken to ensure the safety of users and seeks to comply with international anti-money laundering (AML) regulations.

Some 281 Nigerian accounts have been affected by these personal account restrictions with approximately 38% of these cases restricted at the request of international law enforcement.s,” the CEO said, adding:

Currently, we have resolved 79 cases and continue to work on others. All non-law enforcement cases will be resolved within two weeks.

The lockdown measures come amid a rapid growth in the adoption of digital currencies in Nigeria, as well as restrictions by local authorities. In February of last year, the central bank of nigeria banned local banks provide services to cryptocurrency exchanges. The central bank has also cracked down on companies and individuals that are found to be involved in cryptocurrency trading activities by freeze your accounts.

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Sources: Binance, Bloomberg, The Block, The Block, Reuters

Article by Hannah Estefanía Pérez / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.