Toobit, a cryptocurrency exchange located in the Cayman Islands, has announced the establishment of a $50 million fund aimed at covering losses due to internal technical issues or security breaches on its platform.

Key Points About the Fund
This fund, known as the Toobit Shield Fund, serves as a “proactive risk reserve” providing automatic protection for all Toobit traders from unforeseen incidents impacting the platform.

Users are guaranteed compensation in case of hacks or disruptions, activated from the moment they make their first deposit. Toobit will also maintain a live public dashboard available 24/7 to showcase the fund’s total value, ensuring transparency.

“The safety of our traders’ funds is the foundation of our operations. The Shield Fund offers every trader automatic security, allowing them to trade with peace of mind,” stated CCO Mike Williams.

The company remarked that there is a growing demand for robust protective measures in the cryptocurrency sector, as numerous hacking incidents have resulted in billions lost this year.

“Toobit’s Shield Fund addresses this pressing need, providing an internal layer of security and assurance for traders, especially as the decentralized insurance market is projected to exceed $135 billion by 2032,” the press release noted.

Recent Cyber Attacks in the Crypto Space

Cybercriminals have intensified their focus on the cryptocurrency sector this year. According to reports, approximately $3.1 billion has been lost to cyber attacks in the first half of 2025, marking a 6% increase compared to H1 2024. One of the largest thefts involved the Bybit hack, resulting in losses nearing $1.4 billion.

Additionally, the decentralized exchange Bunni faced an $8.4 million loss in September and was unable to sustain its operations following the incident.