[BreachExchange] Binance is reportedly building a $1 billion insurance fund to counter crypto hacks

[Terrell Byrd]

https://www.msn.com/en-us/money/other/binance-is-reportedly-building-a-1-billion-insurance-fund-to-counter-crypto-hacks/ar-AATkzaq

Binance is building a $1 billion insurance war chest to counter a slew of
recent crypto hacks, Bloomberg reported.
The crypto exchange has been setting aside emergency funds since 2018, and
this fund is just a consolidation of those resources.
Meanwhile, Binance on January 29 restricted 281 personal Nigerian accounts
with some at the request of law enforcement.
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Binance Holdings is building a $1 billion insurance war chest to counter a
slew of recent cryptocurrency hacks against its trading platform, Bloomberg
first reported Monday, citing an internal memo.

The world's largest crypto exchange by trading volume has been setting
aside emergency funds since 2018, Bloomberg reported, and this recent fund
is just a consolidation of those resources.

"At Binance 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," CEO Changpeng "CZ" Zhao said in the
internal memo.

Trading platforms have recently been targeted by hackers as digital asset
investing enters the mainstream.

Earlier this month, Singapore-based Crypto.com confirmed that about 500 of
its customer accounts were hacked. Unauthorized withdrawals totaled
4,836.26 in ether, 443.93 in bitcoin, and approximately $66,200 in other
currencies, the exchange said in a blog post.

The anonymous nature of crypto transactions has been a source of attraction
and frustration for various stakeholders. Regulators have said this boosts
crypto-related crimes, including money laundering and terrorism financing.

Meanwhile, Binance announced January 29 that it's restricting 281 personal
accounts in Nigeria, with approximately 38% of these at the request of
international law enforcement.

Users in the African nation continue to use the platform to trade crypto
despite the central bank prohibiting transactions on crypto exchanges last
year.

"Protection mechanisms such as know your customer, anti-money laundering
measures, collaboration with law enforcement, and account restrictions are
in place to ensure our community remains protected," Binance said in a
statement. "This is a global approach applied in every country."
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