“The safety of our traders’ funds is the foundation of everything we do,” said the company’s CCO.
Toobit, a cryptocurrency exchange based in the Cayman Islands, announced the launch of a $50 million fund specifically designed to cover losses arising from internal technical or security flaws on the platform.
It is important to note that the amount will not be used to offset losses resulting from the compromise of personal accounts, trading decisions or market volatility.
Focus on the safety of the traders
The multimillion-dollar initiative is called “the Toobit Shield Fund.” It was described as “a proactive risk reserve that provides free, automatic protection for everyone Toobit traders against losses due to unforeseen platform incidents.
It ensures that users are compensated in the event of a hack or any disruptions related to the exchange. The protection is automatically activated from the moment a trader makes their first deposit. Toobit also displays a live, 24/7 public dashboard showing the total value of the fund, ensuring full transparency.
“The safety of our traders’ funds is the foundation of everything we do. The Shield Fund gives every trader an automatic safety net so you can trade worry-free,” said CCO Mike Williams.
The company then argued that the demand for robust protection in the crypto sector has “never been greater” due to recent hacking incidents that have taken billions of dollars from victims.
“Toobit’s Shield Fund directly addresses this urgent need, providing a self-initiated layer of security and trust for its traders at a time when the broader decentralized insurance market is expected to reach more than $135 billion by 2032,” the announcement said.
Some hacks from this year
Cybercriminals have even shown an increased interest in the crypto industry this year. The total amount of money lost due to hacking attacks in the first half of 2025 is approximately $3.1 billion, a 6% increase from the $2.85 billion siphoned off in the first half of 2024. The biggest attack in the first months of the year was undoubtedly the Bybit hack, which resulted in losses of approximately $1.4 billion.
The digital asset sector has also remained a prime target for bad actors in recent months. In September, decentralized exchange Bunni suffered a loss of $8.4 million. Although not as significant as other attacks, the entity could not afford to cover the losses and was forced to cease operations.
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