insurance fund

Injective

2026-09-01 05:28:09

Injective Mainnet Stalls Nearly 4 Hours; Attacker Nets ~$4.88M

According to on-chain researcher Rarma, Injective's mainnet stopped producing blocks for roughly 3 hours and 42 minutes on August 31. Upon resumption, the block height moved from 181,027,006 to 181,027,007, and no rollback occurred. QuickNode's status records showed a network-wide stall and the deployment of an emergency patch. An attacker allegedly abused Injective's insurance fund and permissionless binary options market creation mechanism 299 times, sending about 1,979.8 ETH (around $4.88 million) to a single address.

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HTX

2026-08-21 06:51:52

Justin Sun says HTX has upgraded its security architecture and kept user assets 100% SAFU

HTX global adviser Justin Sun said the exchange has formally upgraded its security architecture in response to community calls for stronger safeguards. According to his statement, the update includes a multi-address withdrawal system that spreads hot wallet assets across multiple addresses, along with regular automatic rotation of withdrawal addresses. Once a new address is activated, the old one is disabled immediately and is no longer controlled by the platform, a setup Sun said is designed to reduce single-address risk exposure to a minimum. Sun added that even in an extreme security incident, the upper limit of potential losses would be below $1 million and fully covered by an insurance fund, with users suffering no loss of funds. He also reminded users that withdrawal addresses will change periodically as part of standard security procedures and said users should verify actual on-chain receipts. HTX said it will take every user feedback item and every portion of user assets seriously.

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BitMEX

2026-07-26 08:06:00

BitMEX and BitMart shutdowns put exchange stress back in focus as crypto downturn deepens

Two crypto exchanges announced shutdown plans within days of each other, adding fresh pressure to a market already dealing with a wider wave of closures. BitMEX said on July 23 that it had stopped taking new user registrations and will shut down on Sept. 23, 2026. BitMart followed on July 26 with a staged wind-down that suspends new signups, deposits and new orders, ends all trading on Aug. 26, 2026, and terminates platform operations on Jan. 31, 2027, while saying withdrawals will remain available. The developments come after AscendEX, formerly BitMax, also said in early July that it would cease operations, citing MiCA regulation, market conditions and financial operating pressure. Reactions to BitMEX’s closure split into two main camps. Binance founder CZ pointed to the Biden-era “War on Crypto,” while Flashbots strategy lead Hasu argued BitMEX’s insurance fund design may have been a deeper structural problem. In BitMart’s case, community debate has centered on withdrawal handling, possible funding strain and allegations of poor internal management. The closures have also triggered a scramble by other platforms to attract displaced users. Huobi, Websea, MSX.COM and Blockfinex all moved to publicly court BitMart customers shortly after the announcement.

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Flashbots

2026-07-25 23:56:32

Hasu says BitMEX insurance fund structure may have been a key obstacle to a sale

Flashbots strategic lead Hasu said on X that structural issues tied to BitMEX’s insurance fund may have been an important reason the company was ultimately shut down rather than sold. He said he had already raised concerns in 2018, arguing that the fund was not managed through segregated accounts and lacked both a clear size cap and a defined framework for handling excess assets. In his view, that setup could create incentives to liquidate users more aggressively, grow the fund through liquidations, and eventually monetize those assets. Hasu estimated the insurance fund may now stand at about $270 million. He also said BitMEX had been seeking potential buyers since at least February 2025, but failed to secure a deal on terms it was willing to accept. He added that questions over asset ownership and legal exposure tied to the fund may have made an acquisition harder for prospective buyers.

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BitMEX

2026-07-24 18:17:25

BitMEX faces scrutiny over $270 million insurance fund as shutdown nears

BitMEX is heading toward closure with roughly $270 million left in its in-house insurance fund, and the exchange has not said what will happen to that money after operations end on September 23, 2026. Protos reported that the fund currently holds about $239 million in bitcoin and $31 million in USDT. Although the fund belongs to BitMEX rather than its customers, much of it was built from assets liquidated from traders using leverage on the platform. The unresolved status of the fund has triggered backlash across social media and renewed legal pressure. A proposed class action filed the same day as the shutdown announcement claims the fund expanded during periods of market stress, when customers would have expected protection, rather than shrinking to absorb losses. The plaintiffs, BKX Services and David Namdar, say they lost more than 622 BTC after BitMEX liquidated their positions and seek to represent similarly situated US users dating back to July 2018. The controversy has also focused on a November 18, 2025 rebalancing, when BitMEX cut the fund to about 3,600 BTC and just over 30 million USDT after it had once topped 36,400 BTC. BitMEX said the move would have no impact on traders, but did not explain where the removed bitcoin went. Protos also noted that BMEX, the exchange’s proprietary token, is down 96% year-to-date after plunging on the closure news.

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Drift Protoco

2026-07-23 04:15:14

Drift Protocol Launches DFX Claim Checker, $295M Recovery Plan Begins

Drift Protocol's DFX token and insurance fund claim checker goes live, allowing affected users to view allocations. Actual claims require exchange relaunch, targeted for Q2 2026, backed by Tether's $127.5M and other partners.

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Tapbit

2026-07-22 07:26:14

Tapbit Marks Fourth Anniversary With 12 Million Users and $50 Million Insurance Fund

Tapbit said it has surpassed 12 million registered users, supports more than 1,000 trading pairs, and maintains a $50 million insurance fund as it marks its fourth anniversary.

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BitMEX

2026-07-14 06:06:35

BitMEX’s perpetual swap framework still shapes crypto derivatives, with funding arbitrage intact

A BlockTempo report says BitMEX remains central to the structure of modern crypto derivatives because the exchange introduced several mechanisms that are now standard across the market: perpetual swaps, funding rates, liquidation engines and insurance fund design. The article says perpetual contracts accounted for about 78% of the crypto derivatives market’s $86 trillion trading volume in 2025, with BitMEX’s system running continuously since 2016. The report also highlights BitMEX’s inverse contracts as a source of persistent pricing differences versus USDT- and USDC-settled linear perpetuals on larger venues such as Binance, OKX and Hyperliquid. According to the piece, BitMEX’s inverse contracts have maintained roughly a 10% annualized positive funding bias since 2016, creating cross-exchange, delta-neutral funding capture opportunities. It points to examples from the first half of 2025, when an unlevered strategy that went long on linear-perpetual venues and short on BitMEX generated about 15.6% annualized delta-neutral returns for SOL and about 15.7% for AVAX. The report also cites BitMEX’s insurance fund performance during an October 2025 flash crash and notes that the exchange is now working on multi-asset margining and institutional self-custody integrations for higher-volume traders.

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