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Binance Claims It Holds $5 Billion in Tokens to Cover Potential Hack Losses
(3 hours ago) · 1 source · Summarized by CryptoBipto
Binance has stated that it holds $5 billion worth of matching cryptocurrency tokens intended to cover losses in the event of a hack. The exchange says these funds are held in custody as a safeguard for users. Details about how these reserves are audited or verified have not been independently confirmed.
WHY IT MATTERS
When you store cryptocurrency on an exchange, you are trusting that company to keep your funds safe — similar to depositing money in a bank.
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SOURCES
- cointelegraph.com
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