Why did Binance create SAFU?
Binance Projects
1 Discussion
Binance established the Secure Asset Fund for Users (SAFU) in July 2018 to protect the funds of its users. Binance contributed a percentage of trading fees when it launched the fund in order to develop it to a sizeable amount to protect customers. At the time, the exchange was experiencing a series of trade interruptions due to abnormal trading activity. This resulted in the creation of the aforementioned fund to protect users in the event of a large hack. At the time, the exchange declared that it would dedicate 10% of all trading costs to this fund, which would be kept in a separate cold wallet. SAFU has already been utilized to recompense hacking victims, such as the Binance BTC hack on May 2018.