Singapore-based cryptocurrency exchange Bitget says it has launched a US$200 million “protection fund” to act as an “emergency insurance reserve” to protect user funds when their losses are not a consequence of their own actions or behavior on the platform.
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Fast facts
- The Bitget Protection Fund comprises 6,000 Bitcoin and 80 million Tether, with a combined value of over US$200 million (based on opening prices of July 26), the company said.
- The fund is expected to act as a safeguard for Bitget users and the Bitget trading platform, and is aimed at addressing concerns of accountability, safety, and security in crypto.
- The Bitget Protection Fund may not cover incidents where the user is deceived into authorizing a transaction or mistakenly authorizes a transaction. This also extends to cases where there appears to have been an unauthorized transaction, but no external transfers have been made.
- If users require relief from the Bitget Protection Fund, they would have to file a police report in their local jurisdiction, and Bitget said it pledges to use information provided by the user to conduct a forensic investigation and determine “fair” compensation.
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