BitonEx Protection & Services

Created by BitonEx 公告, Modified on Fri, 9 May at 7:47 PM by BitonEx 公告

$300 Million Protection Fund Safeguarding Your Digital Assets with Transparency and Global Compliance

In the rapidly evolving world of digital finance and crypto assets, platform security, asset transparency, and regulatory compliance form the bedrock of sustainable exchange operations. At BitonEx, we deeply understand that user assets are not merely numbers on a screen—they represent the trust and future financial freedom of millions of individuals and institutions.

Therefore, BitonEx has built a comprehensive, multi-layered asset protection system covering institutional design, capital reserves, technical defenses, and global compliance. Anchored by a robust $300 million Protection Fund, our system is designed to safeguard every user’s digital wealth with rigor and integrity.

I. $300 Million Protection Fund — A Strong Financial Reserve for User Security

The BitonEx Protection Fund, with a current reserve of USD 300 million, is fully backed by the platform’s proprietary capital and operational reserves, and is dedicated solely to user protection. The fund is segregated, purpose-specific, and transparently managed to compensate users in extreme scenarios.

Primary Applications

  • Compensate users for losses due to technical vulnerabilities or external hacking attacks

  • Provide liquidity support during withdrawal delays or asset freezes caused by force majeure events

  • Respond swiftly to compliance enforcement actions or unforeseen market disruptions

  • Cover user asset disputes or losses resulting from operational errors or accidental incidents

Fund Management Mechanisms

  • Segregated Accounts: Fully separated from operational capital, with clear usage scope

  • Multi-level Oversight: Supervised by BitonEx internal risk teams, external auditors, and the Board of Directors

  • Progressive Expansion: Fund size to be dynamically increased in proportion to platform and user growth

  • Usage Transparency: All fund deployments and compensations publicly disclosed and audited regularly

With this fund, BitonEx pledges: even under extreme technical or market stress, user assets will be prioritized and the platform will shoulder the primary responsibility.

II. 100% Proof of Reserves — Full Transparency, Real-Time Verification

Asset safety is not only about custody but also about transparency and verifiability of usage. BitonEx enforces a strict 100% full reserve policy, ensuring all user assets are fully backed, instantly withdrawable, and publicly auditable.

Key Mechanisms

  • 1:1 Reserve Coverage
     Every user asset is backed on a 1:1 basis with no lending, no leveraging, and no rehypothecation

  • Merkle Tree Proof System
     Users can independently verify their account balances within total platform reserves

  • Cold & Hot Wallet Segregation
     97% of digital assets securely stored offline in geographically distributed cold wallets; 3% hot wallet liquidity maintained for operational needs

  • Regular Reserve Reports
     Monthly disclosures of total assets and liabilities, independently verified and published

  • On-Chain Transparency
     Public disclosure of main reserve wallet addresses for traceability and verification

Custody Principles

  1. No Commingling: Complete segregation of user and platform funds

  2. No Lending: User assets are not lent to third parties

  3. No Arbitrage: User funds are not used for high-risk investments

At BitonEx, we firmly believe: “Transparency builds trust; verifiability fortifies transparency.”

III. Multi-layer Security Infrastructure — Comprehensive, Defense-in-Depth

Digital asset security requires not only sound capital reserves but also robust technical and operational frameworks. BitonEx implements a multi-layered, defense-in-depth security architecture that spans asset storage, system security, operational governance, and user protection.

1. Asset Storage Security

  • Cold/hot wallet segregation with multi-signature authentication

  • Distributed Key Management (DKM): Key shards stored across multiple secure locations to mitigate concentration risk

  • Geo-distributed cold storage: Assets backed up across major global financial hubs (Americas, APAC, Europe)

2. Platform & System Security

  • Enterprise-grade DDoS protection against multi-vector attacks

  • AI-powered risk engine for real-time threat detection and mitigation

  • Hardware-based security modules (HSM/TEE) safeguarding keys, signatures, and sensitive transactions

3. Operational & Governance Security

  • 24/7 Global Security Operations Center (SOC) for continuous monitoring and incident response

  • Annual red team / blue team drills and geographically redundant disaster recovery systems

  • Global bug bounty program incentivizing external security researchers to harden platform defenses

4. User Account Protection

  • Multi-Factor Authentication (MFA) combining SMS, Google Authenticator, and biometric methods

  • Intelligent IP and device risk control to detect anomalous account activity

  • Withdrawal whitelists and security lock features preventing unauthorized fund transfers

IV. Global Compliance Framework — Embracing Regulation, Building Trust

BitonEx upholds a compliance-first global strategy, operating transparently and legally across multiple key jurisdictions to ensure user rights are protected under applicable laws.

1. Evolving Global Compliance Coverage

Currently, BitonEx is registered with the U.S. FinCEN as a Money Services Business (MSB), authorizing us to legally provide virtual asset services and fiat settlement. Meanwhile, we are actively preparing to expand regulatory footprints in multiple jurisdictions, including but not limited to:

  • European Union (under the EU VASP regulatory framework)

  • Asia-Pacific hubs (Singapore, Hong Kong, Japan)

  • Strategic markets in the Middle East and Latin America

While some regulatory applications and filings are ongoing, BitonEx has proactively aligned internal frameworks with Anti-Money Laundering (AML), Know Your Customer (KYC), and data protection standards in anticipation of evolving global policies.

2. AML & KYC Policies

  • Integrated with leading global identity verification providers, supporting multi-country document authentication and risk scoring

  • Continuous screening against FATF watchlists and OFAC sanction lists

  • Transaction monitoring and fund flow tracing to strengthen AML/CTF compliance

3. Data Privacy & Protection

  • Strict adherence to GDPR, CCPA, and other major international data protection laws

  • Data minimization: Only essential information collected, strictly protected from misuse

  • Regular security audits and encrypted data storage ensuring user privacy

4. Legal & Compliance Governance

  • Global compliance advisory network spanning North America, Asia, and Europe

  • Regular staff training on regulatory awareness and legal responsibilities

  • Dedicated internal Compliance Committee evaluating business legality and policy alignment

V. User Rights Protection & Service System — User-Centric, Trust-Building

BitonEx believes that safeguarding assets also means safeguarding user experience and rights. We strive to empower users as co-builders and supervisors of the platform through transparent communication, education, and participatory governance.

  • 24/7 Global Customer Support
     10+ languages supported across multiple channels (in-app, web, communities) with rapid response mechanisms

  • BitonEx Academy
     Educational courses on asset safety, investor protection, and compliance to enhance user literacy

  • User Feedback & Governance Participation
     User advisory councils, community proposal channels, and bug reporting systems enabling platform co-governance

  • Major Matters User Voting (Planned)
     Exploring token-based voting mechanisms for community governance on key operational issues


Our Security Philosophy

“Governance ensures safety, technology builds fortresses, compliance strengthens roots, service earns trust.”

BitonEx is more than just a trading platform—it is a global security hub trusted by digital asset participants worldwide. Moving forward, we will continue investing in cutting-edge security, regulatory expansion, and robust protection systems to shape a more transparent, fair, and inclusive Web3 financial future together with our users.

BitonEx — Setting the New Standard for Digital Asset Security.



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