SEC’As a result of the pressure and lawsuits it has put on Binance, Binance‘s insurance fund lost 11 percent.
crypto industry has been going through some very rough days in the last few weeks. U.S. Securities and Exchange Commission ( SEC ), shook the agenda with the lawsuits it filed against the two largest cryptocurrency exchanges. The litigation of crypto exchanges and the collapse of altcoins also negatively affected the course of the industry.
The Wall Street JournalAccording to the news of S. ECAs a result of the pressure and lawsuits brought by Binance, the insurance savings that Binance keeps as a bad day fund. 11 percent depreciationlived.
Binance’s Insurance Fund Is Losing Value!
Launched as the world’s largest crypto exchange Binance started an insurance fund in 2018. This fund was created to secure the assets of platform users.
Assets, which are reflected as emergency funds, also serve to prevent disruptions in possible withdrawal and deposit transactions. The fund, which provides functionality in many areas, has been endangered due to the troublesome processes experienced recently.
The Wall Street Journal’According to the news of Binance, the insurance fund created by Binance to use in emergencies and to protect customer assets. 11 percent value lost. Before the SEC cracked down on crypto and sued Binance, this fund was worth $950 million. With the Binance lawsuit filed by the SEC, the fund has dropped to 840 million.
Binance CEO‘This CZmentioned that this fund has been strengthened in order to relieve the stress on customers and to use it for possible bad situations. CZstated that after the bankruptcy of FTX, the insurance fund was increased to $ 1 billion.
But the devastation wrought by the SEC’s lawsuit has cost Binance nearly halfway through its insurance fund. It evaporated $110 million.
