Kingstown, St. Vincent and the Grenadines, October 22, 2026, Chainwire

Cryptocurrency exchange Bitunix has increased its Care Fund from $30 million to $50 million USDC, a stablecoin pegged to the U.S. dollar, expanding the reserve set aside to support users in exceptional situations. The company has also disclosed the fund's new on-chain address, giving users a way to track the reserve directly on the blockchain.

The Care Fund is designed to help protect user assets and to support compensation for unexpected incidents that require an exchange-level response. These are defined as abnormal events rather than routine market outcomes. Any potential compensation depends on the circumstances of the incident and the outcome of the company's investigation. The distinction is relevant because assets held on a centralized exchange carry counterparty risk — the possibility that the platform itself is unable to return user funds after an incident. Reserves of this kind are structured to address that gap rather than routine trading outcomes.

According to Bitunix, the enlarged reserve already covers the full value of the exchange's hot wallets, adding another layer to its existing asset protection measures.

On-Chain Address Adds Transparency

Bitunix has disclosed the new on-chain address associated with the Care Fund, allowing the reserve to be examined on the blockchain. The address can be validated on Etherscan.

https://x.com/BitunixOfficial/status/2112148024071802983

On-chain visibility can help users and market observers verify the balance held at a particular address. Unlike periodic attestations, a public address can be checked at any time, so the reserve can be monitored as it changes. The address should be checked against Bitunix's official information to confirm that it belongs to the Care Fund.

A Separate Reserve Within a Broader Security System

The Care Fund is one component of Bitunix's broader approach to protecting user assets. Rather than relying on a single measure, the exchange combines custody arrangements, account security controls, penetration tests, user insurance, Proof of Reserves, and a dedicated fund for exceptional incidents. This mix reflects a wider industry shift toward verifiability, with exchanges increasingly pairing on-chain disclosures and third-party safeguards to give users ways to confirm how their assets are held.

Each measure serves a distinct purpose. Custody arrangements help secure assets, Proof of Reserves supports the verification of asset holdings, and the Care Fund provides a dedicated reserve that may be used to address eligible user losses in unexpected situations.

The $50 million fund is already sufficient to cover the full value of Bitunix's hot wallets, according to the company. Hot wallets are connected to the internet and are used to support transactions and withdrawals. Maintaining a reserve that covers their full value adds a further layer of protection if an exceptional incident affects the exchange.

Third-Party Custody Instead of In-House Wallet Infrastructure

Bitunix differs from exchanges that develop and manage their own wallet infrastructure. The exchange works with established third-party custody providers, including Fireblocks and Cobo, to support the safekeeping management of digital assets.

Both providers use multi-party computation (MPC) technology, under which each private key is split into separate shares so that no single key can move user funds on its own. A significant portion of user assets is also kept in offline cold storage.

The Care Fund sits on top of this setup as an added safeguard. It covers extreme scenarios that custody controls alone cannot fully rule out. The fund is not a replacement for secure custody or other preventive controls; instead, it provides an additional reserve for exceptional circumstances in which an exchange-level response may be required.

Working with specialist custody providers allows Bitunix to rely on dedicated custody infrastructure rather than building its entire wallet security system in-house. This approach forms part of the exchange's broader security framework, alongside the Care Fund and other asset protection measures.

Cases involving potential compensation are assessed individually. Bitunix reviews the circumstances of an incident, verifies the affected accounts or transactions, and determines the appropriate response based on the available evidence and applicable rules.

Bitunix initially launched the Care Fund in 2025 with $30 million USDC. Its expansion to $50 million reflects the continued development of this protection system. More information is available on the exchange's official Care Fund page.

About Bitunix

Bitunix is a global cryptocurrency derivatives exchange trusted by more than 5 million users across more than 150 countries. Guided by its core principle of better liquidity, better trading, the platform is built for traders who expect more and is committed to providing Ultra Trust, Ultra Products, and Ultra Experience. Bitunix offers a fast registration process and a user-friendly verification system to support safety and compliance. Through protection standards such as Proof of Reserves (POR) and the Bitunix Care Fund, the exchange prioritizes user trust and fund security. Industry-first features such as Fixed Risk, a TradingView-powered chart suite, indicator alerts, and cloud-synced templates are designed to give both beginners and advanced traders a seamless trading experience.

Source: Chainwire