Binance Assures Users Funds Are Safe After 3rd-Party Glitch Briefly Halted Withdrawals

Twitter icon  •  Published 1 year ago  •  Hassan Maishera

Binance, the world’s leading crypto exchange, has assured its users that their funds are safe after a third-party glitch resulted in the exchange briefly halting withdrawals.

Binance is the world’s leading cryptocurrency exchange and one of the most secure trading platforms in the world.

The cryptocurrency exchange assured its users that their funds were safe after it halted withdrawals across multiple networks on Wednesday, August 17th.

Binance explained that the suspension took place across multiple networks as a result of a technical issue by a third-party provider. In a tweet on Wednesday morning, Binance wrote;

“Earlier today, around 07:00 am UTC, #Binance temporarily closed withdrawals for multiple networks due to an issue with a third-party technical provider. Our team responded quickly, resolving the issue within 1-hour. Funds are SAFU. Thank you for your patience and understanding.”

The cryptocurrency exchange also assured its users that despite the freeze, funds are “SAFU.” SAFU is a popular acronym in the crypto space that stands for Binance’s monetary fund, Secure Asset Fund for Users (SAFU). Binance created this fund in 2018 to compensate customers in light of a hack on the exchange. The fund is home to 10% of all trading fees generated on the platform.

Binance went on to explain to its users on Twitter that SAFU currently has over $1 billion in place. Hence, assuring them that user funds on Binance remain safe at all times. 

This latest development comes a few days after Binance received initial approval from Kazak authorities to operate in the country. While this is just the beginning of the process, it’s a huge step toward becoming licensed to operate as a digital asset trading platform and custody provider in the Astana International Financial Centre (AIFC).

Binance has committed to new global regulatory standards, hiring compliance teams in nations worldwide to ensure that it provides a safe, reliable, and regulated crypto trading platform. 

The cryptocurrency intends to win operating licenses worldwide by strengthening its compliance team. 

The fact that user funds are safe on Binance makes it one of the most secure crypto exchanges in the world. In addition to that, more positive Binance reviews show that the cryptocurrency exchange further cements its place as the world’s leading digital asset trading platform.

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.