Binance is reportedly building a $1 billion insurance fund

According to Bloomberg, Binance is reportedly building a $1 billion insurance fund. Since 2018, the crypto exchange has been setting aside emergency cash, and this fund is simply a collection of those funds. Meanwhile, on January 29, Binance suspended 281 personal Nigerian accounts, some of which were imposed at the request of law enforcement.

In an effort to fight crypto hacks, Binance is reportedly building a $1 billion insurance fund

Bloomberg initially reported Monday that Binance Holdings is constructing a $1 billion insurance war chest to combat a string of recent cryptocurrency attacks against its trading platform, citing an internal document.

According to Bloomberg, the world’s largest crypto exchange by trade volume has been setting away emergency money since 2018, and this new fund is simply a consolidation of those funds. “We always claimed ‘funds are safe’ at Binance, and today the Binance Secure Asset Fund size functions as an effective safeguard as well as protection for consumers against such unlikely circumstances,” said CEO Changpeng “CZ” Zhao in an internal memo.

Hackers have recently attacked trading systems like digital asset investing become more prevalent. Crypto.com, based in Singapore, acknowledged earlier this month that roughly 500 of its customers’ accounts had been hijacked. The exchange reported in a blog post that unauthorized withdrawals totaled $4,836.26 in ether, 443.93 in bitcoin, and $66,200 in other currencies.

For numerous parties, the anonymity of crypto transactions has been both an appeal and a source of frustration. Crypto-related crimes, such as money laundering and terrorism funding, are reported to be on the rise as a result, according to regulators.

Meanwhile, on January 29, Binance said that it was banning 281 personal accounts in Nigeria, with about 38% of them being done at the request of international law enforcement.

Despite the central bank’s prohibition on crypto exchange transactions last year, users in the African country continue to utilize the platform to trade cryptocurrency. “To ensure our community remains safe, protection procedures such as know your customer, anti-money laundering measures, coordination with law authorities, and account limits are in place,” Binance stated in a statement. “This is a worldwide strategy that is being implemented in every country.”