Poloniex to Establish $100 Million User Protection Fund, Reinforcing Its Asset Security Framework

Dear Poloniex Users,

Poloniex is proud to announce the establishment of a $100 million User Protection Fund, providing all users worldwide with an elevated level of asset security and reinforcing our commitment to building a trusted trading environment.

1. What Is the User Protection Fund

The User Protection Fund is a dedicated security reserve established by Poloniex, designed to strengthen the platform's resilience against  extreme scenarios and provide an additional layer of protection for user assets.

The fund will complement Poloniex's existing Proof of Reserves system: while Proof of Reserves ensures full 1:1 backing of user assets, the User Protection Fund adds a deeper safety net on top of that foundation. Together, the two mechanisms work in tandem to safeguard user assets on all fronts.

2. Poloniex's Multi-Layered Security Framework

The User Protection Fund is the latest addition to Poloniex's comprehensive security infrastructure. Backed by over 12 years of continuous, secure operations, Poloniex has built a multi-tiered asset protection system:

• Proof of Reserves: For over 20 consecutive months, Poloniex has published regular Merkle tree-based Proof of Reserves reports, maintaining a reserve ratio above 100% at all times. Users can independently verify this data anytime via our official website.
• Beacon Network Membership: In August 2025, Poloniex joined TRM Labs' Beacon Network — the first real-time crypto crime response network — as a founding member, collaborating with global law enforcement to combat illicit financial activity.
• $100 Million User Protection Fund: Building upon our Proof of Reserves and Beacon Network partnership, this dedicated reserve provides yet another layer of security for user assets.

3. More Details to Come

Further details on the User Protection Fund — including trigger mechanisms and coverage scope — will be shared in upcoming announcements. Please stay tuned to Poloniex's official channels for the latest updates.

At Poloniex, we believe that security is the very foundation of home. The establishment of the $100 million User Protection Fund is a renewed commitment to our promise of building Your Crypto Hometown. No matter how the market shifts, Poloniex is always by your side.

Poloniex Team

April 6, 2026