Cryptocurrency exchange Binance has created a $1 billion insurance fund for users amid rising security concerns in the industry.
The company, which reported a security breach in 2019, has been allocating money for emergency purposes since July 2018 and recently consolidated the funds.
CEO Changpeng Zhao announced in a memo that customers’ funds were safe and that the allocation was set to cushion users against any possible losses.
Cyberattacks have reportedly increased in cryptocurrency trading platforms leaving investors with huge losses and causing firms to close down. The challenge is further aggravated where transactions are only traced to codes and not personal addresses.
Crypto.com recently reported a security violation involving $34 million worth of crypto assets where users experienced unauthorized withdrawals.
Hackers also stole over $80 a million worth of assets from a blockchain protocol by Qubit Finance as security concerns escalated in the sector.
Source: Bloomberg