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Binance Tops up Its Insurance Fund to $1 Billion Following FTX Crash

Summary:
Binance’s CEO said the world’s largest cryptocurrency exchange increased its Secure Asset Fund for Users (SAFU) to billion again. This comes as a result of the recent market plunge, and its purpose is to grant customers maximum protection in case of another possible negative event. Changpeng Zhao (CZ) tweeted that his trading venue topped up its SAFU insurance fund to billion. BUSD and BNB holdings account for 0 million of the total sum, while BTC’s address makes up the remaining 0 million. The executive outlined that the move could offer transparency and additional security to clients during the current challenging times. To adjust to recent price fluctuations, #Binance has topped up the #SAFU insurance fund to billion USD equivalent again. BUSD AND BNB

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Binance’s CEO said the world’s largest cryptocurrency exchange increased its Secure Asset Fund for Users (SAFU) to $1 billion again.

This comes as a result of the recent market plunge, and its purpose is to grant customers maximum protection in case of another possible negative event.

  • Changpeng Zhao (CZ) tweeted that his trading venue topped up its SAFU insurance fund to $1 billion. BUSD and BNB holdings account for $700 million of the total sum, while BTC’s address makes up the remaining $300 million.
  • The executive outlined that the move could offer transparency and additional security to clients during the current challenging times.
  • Binance established the SAFU in 2018 as an emergency insurance fund that could protect clients in case of extreme situations.
  • Due to the ongoing crypto winter, the fund’s balance recently dropped to $735 million before the company increased it back to $1 billion now.

“As of November 2022, we’ve topped the SAFU balance back to $1B. We made a promise to our user base, along with the larger crypto ecosystem, that SAFU would always maintain a sizable level. We’ll continue to uphold that promise and continue to keep building,” a Binance statement reads.

  • Sufficient reserves and a transparent platform seem to be vital features for investors nowadays. Numerous entities have already become victims of the bear market, including the Thai exchange Zipmex, the crypto lending company Celsius Network, and the hedge fund Three Arrows Capital.
  • Sam-Bankman Fried’s trading venue has also experienced problems recently. Binance vowed to liquidate all its FTT holdings, which prompted a massive price drop for the token and a subsequent market decline.
  • Despite saying initially that FTX and its assets are “fine,” Bankman-Fried later confirmed the rumors that Binance will acquire his firm.

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