Cryptocurrency exchange PrimeXBT has assured its customers that their funds are safe on its platform. The company gave this assurance a few days after the FTX exchange collapsed.
FTX, a leading crypto exchange, filed for bankruptcy last week. The bankruptcy filing came after reports leaked that the exchange was using customer funds for other investments.
With FTX collapsing, several crypto companies began to assure their users that their funds were safe. In a tweet over the weekend, PrimeXBT told its customers that their funds are safe as it doesn’t use their money for its personal trading.
Clarity for #PrimeXBT users:
— PrimeXBT (@PrimeXBT) November 11, 2022
Safety and security of user funds and AUM are a top priority at PrimeXBT.
In response to the situation with FTX this week, we would like to share more insight into how we handle and protect assets on PrimeXBT.
A short thread 🧵👇
PrimeXBT said;
“PrimeXBT does not use tokens as collateral for FIAT money credit lines (the main reason for the fall of FTX). Clients' Assets Under Management (AUM) are not used as collateral. PrimeXBT maintains a strict separation of client and company money.”
The crypto exchange added that it doesn’t prop trade company or client funds, and it holds and builds an insurance fund.
“We hope this brings more clarity and comfort to our valued users. We continue to strive to maintain the highest security and sustainable business practices in the industry,” PrimeXBT added.
Reviews of PrimeXBT have praised it for its low fees and high liquidity.