Bitget Raises its Protection Fund to $300M to Reassure Users After FTX Collapse
Leading global cryptocurrency exchange, Bitget announces that it will increase its Protection Fund to 300 Million USD, in order to provide better protection and further assurance to crypto users following the collapse of FTX. This is part of Bitget’s major efforts in building the trust of the crypto market after the FTX collapse, leaving users with massive losses. The initiatives come along with a 5 million USD Builders’ Fund to support FTX users, coupled with the plan to share the Merkle Tree Proof of Reserves, which is under preparation and will soon be released in 30 days.
Bitget’s Protection Fund was launched in July this year with the objective to safeguard user’s crypto assets. It was set up with a fund worth of 200 million USD, consisting of 6000 BTC and 80 million USDT. The fund is completely self-funded, allowing more flexibility and discretion to efficiently cover users’ assets without external bureaucracy or policy changes.
The increased 300 million USD protection fund will be made up of popular cryptocurrencies of high liquidity, such as BTC, USDT, and USDC. The exchange has pledged to secure the value of the fund for the next three years with no withdrawal. If the fund value drops as the price of BTC declines, Bitget will continue to cover the position to ensure that the balance is not less than 300 million USD, at all times.
Gracy Chen, Managing Director of Bitget, says, “Expansion for Bitget Protection Fund is another move by Bitget to help enhance trust and confidence in the crypto space as a whole. Working as an emergency reserve and with additional capital, the fund would be able to offer top-notch safety and protection for users, especially in extreme and unpredictable situations in the crypto space. We believe that risk management policies such as protection funds would become the norm for prominent and reliable exchanges.”
She adds, “Bitget strives to work on quality efforts to ensure that the platform is safe and stable with adequate protection for our users. We will continue to focus on initiatives in building a trustworthy and transparent crypto ecosystem for all.”
- EXCLUSIVE: “Paying By Numbers” – Hugh Burden, AutoRek in ‘The Paytech Magazine’ Read more
- FF Awards 2022: The results are in! Congratulations to all the Winners! Read more
- FF Virtual Arena: International Payments Read more
- EXCLUSIVE: “Easing the Squeeze” – Rowan Brewer, Paymentology in ‘The Paytech Magazine’ Read more
- ITN Business and FINTECH Circle produce news-style programme exploring the role of fintech in society Read more