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Binance Holdings Ltd. created a $1 billion insurance fund for its users on Monday, January 31. This seems to be a necessary measure due to the growing volume of cybercrime, in particular, hacking of cryptocurrency trading platforms.
The world's largest cryptocurrency exchange by trading volume decided to allocate money for an emergency insurance portfolio back in July 2018. Most recently, there was a consolidation of all intra-fund funds in one place.
In general, the insurance fund was valued at $1 billion (based on data as of the opening of trading on January 29).
"We always said 'funds are safe', and today the Binance Secure Asset Fund size acts as an effective safeguard as well as protection for users against such unlikely issues," said Binance Founder and CEO Changpeng Zhao in a service note.
It should be noted that cybersecurity breaches have become ubiquitous on cryptocurrency trading platforms, causing many investors to become disillusioned and companies to suspend services to address network vulnerabilities.
Most often, vulnerabilities relate to the security of accounts, and only to a negligible extent - to the very calculations using blockchain technologies.
These efforts mark an attempt to allay user fears following a series of cyberattacks that included the exchange itself in 2019.
In January alone, customer accounts holding about $34 million in cryptocurrencies and cash were hit by unauthorized withdrawals, Crypto.com reported.
For example, last week hackers seized over $80 million worth of digital assets from the Qubit Finance blockchain extension.
In my opinion, this is also primarily a warning of a system in which transactions can be tracked not only by anonymous serial codes but by personal identification data because this link is the most vulnerable to fraudsters. Data theft occurs from devices infected with viruses, as well as at the stage of transferring/cashing out funds. And compliance with measures to ensure the protection of your data is more relevant than ever.
However, the opposite opinion is already sounding that linking to personal identifiers will make it possible to secure funds freely roaming around the world in the form of tokens.
Nevertheless, in general, this is positive news, which will allow BTC and its colleagues to strengthen their positions in the next 2 trading days.
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