The increase in value of the fund’s Tether, TrueUSD, BNB, and Bitcoin balances is the reason for this spike.
The value of insurance funds held by leading cryptocurrency exchanges has increased dramatically in the midst of an ongoing bull market, rising by over $1 billion.
Stay in the know on crypto by frequently visiting Crypto News Today
From $1 billion in January 2022 to over $2.03 billion today, Binance, a well-known cryptocurrency exchange, has more than $2 billion in the Secure Asset Fund for Users (SAFU).
The increase in value of the fund’s Tether, TrueUSD, BNB, and Bitcoin balances is the reason for this spike.
CryptoCaster Quick Check:
Bitget, an additional exchange, has reported that the value of its protection fund has increased from $300 million in November 2022 to $612 million. This growth has been driven by the notable increases in the value of Bitcoin, which has increased by 136% in the last year, as well as a 79.36% increase in BNB.
While most cryptocurrency exchanges offer some insurance protection to their users, some, like Binance and Bitget, have made their on-chain addresses visible to the general public.
A significant reserve of 20,000 BTC ($1.32 billion) was announced by Huobi (now HTX) in 2019 for extreme security scenarios; however, the specifics of this reserve are not currently available.
Additionally, HTX experienced multiple security breaches in the last year that cost them a significant amount of money.
For user protection, OKX manages a $700 million “Risk Shield” fund; however, it is unclear how much of this fund is made up of fiat money, stablecoins, or tokens.
Exchanges take different approaches to insurance. For example, Coinbase bases its insurance coverage on the customer’s location and the type of assets they own—crypto or fiat.
The transparency of insurance funds is a crucial problem because, as was the case with the now-defunct FTX, some exchanges are reluctant to reveal on-chain addresses because of cybersecurity worries or possible fraud.
The possibility for misinformation was demonstrated when Gary Wang, the former chief technology officer of FTX, told authorities that the exchange’s promised $100 million insurance fund in 2021 was a hoax.
Moreover, off-chain liabilities—a crucial factor in determining an exchange’s financial stability—are not included in on-chain addresses, which offer little information.
The increasing focus on investor protection in the cryptocurrency space is evidenced by the introduction of regulations in certain regions, such as Hong Kong, requiring cryptocurrency exchanges to insure users’ assets, covering up to 50% of both fiat and crypto holdings.
If this article brought you clarity, insight, or value—support the work that made it possible.
At CryptoCaster, we report on Web3, crypto markets, and institutional finance with no billionaire owners, no shareholders, and no hidden agenda. While mainstream media bends toward Elon Musk, BlackRock, and JPMorgan narratives, we stay focused on what matters: truth, transparency, and the public interest.
We don’t just cover the headlines—we investigate the power structures behind them. From FTX and Ripple to the quiet push for CBDCs, we bring fearless reporting that isn’t filtered by corporate interests.
CryptoCaster is 100% paywall-free. Always has been. To keep it that way, we depend on readers like you.
If you believe independent crypto journalism matters, please contribute—starting at just $1 in Bitcoin or Ether. Wallet addresses are below.
Your support keeps us free, bold, and accountable to no one but you.
Thank you,
Kristin Steinbeck
Editor, CryptoCaster
Please Read Essential Disclaimer Information Here.
© 2024 Crypto Caster provides information. CryptoCaster.world does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.
Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
CRYPTOCASTER HEATMAP
