Binance replenished the SAFU insurance fund to the amount of $1 billion
Today, November 9, 2022, the head of the trading platform Changpeng Zhao said that in response to recent price fluctuations in the cryptocurrency industry, the management of the exchange decided to replenish the accounts of the SAFU insurance fund by $700 million in Binance USD (BUSD) and Binance Coin (BNB), as well as another $300 million in Bitcoin (BTC), the entrepreneur also confirmed his words with proof, attaching links to transactions in the chain to a message on social networks.
The Safe Assets Fund for Users (SAFU) is needed for emergency insurance. It was launched by Binance in the summer of 2018 and is designed to protect the virtual assets of users of the service. Initially, the company allocated a percentage of transaction fees to increase the program's account to a level that could reassure the platform's customers.
In January of this year, SAFU was valued at $1 billion. However, its value fluctuated depending on the market situation, which is why Zhao and his colleagues decided to replenish the fund's balance sheets.
This announcement was made against the background of mass panic of traders due to the liquidity crisis on the world's second largest stock exchange FTX. Thus, Binance's actions have further strengthened its position in the cryptocurrency market and are designed to form a more serious level of confidence in the activities of the trading service.
Earlier edition Crypto.ru Reported: FTX management signed a partnership agreement with Binance after the collapse of the FTX Token (FTT) service token. The head of the platform, Sam Bankman-Fried, assured that the liquidity crisis will be resolved.