Crypto exchange Bitunix has announced a serious security and compliance upgrade based on latest integrations with Fireblocks and Elliptic, in addition to a significantly expanded insurance pool.
According to a recent press release, Bitunix is introducing Fireblocks' institutional custody infrastructure and Elliptic's on-chain anti-money laundering (AML) and risk monitoring tools. The package includes multi-party computation (MPC)-based custody, real-time screening for illicit money flows, and a complete of $42.5 million in insurance coverage for digital asset crime and operational risks.
Bitunix sees this move as the following step in its roadmap to attain “institutional-level” security, attracting more skilled and wealthier users while reassuring existing retail customers.
Fireblocks integration: MPC custody and policy controls
Central to the upgrade is Bitunix's integration with Fireblocks, a custody and infrastructure provider commonly utilized by banks, asset managers and top-tier exchanges.
Fireblocks' system replaces traditional single private key wallet models with MPC-based custody. Instead of storing a key in a single location, MPC splits critical signature material across multiple secure components and requires them to work together to authorize a transaction. No single device or operator ever has the total key.
In addition to MPC, Fireblocks offers:
- Policy-based approval workflows that implement multi-person verification and role-based permissions for withdrawals and transfers.
- A battle-tested transfer network utilized by major financial institutions to securely transfer assets between counterparties.
- Operational tools that help exchanges manage cold and hot wallet balances without revealing keys.
For Bitunix users, the combination is essentially invisible on the surface. Deposits and withdrawals still work through the same old interface, however the underlying custody stack is designed to be much harder for attackers to compromise.
Elliptic KYT: Real-time checking for illegal data streams
On the compliance side, Bitunix joins Elliptic KYT, the corporate’s “Know Your Transaction” product. KYT is utilized by banks, major exchanges and fintechs to observe blockchain activity and flag suspicious flows in real time.
With Elliptic KYT, Bitunix can:
- Check deposits and withdrawals for links to known darknet markets, sanctioned firms, stolen funds and other high-risk sources.
- Evaluate transactions and addresses based on risk profiles and robotically trigger additional checks or blocks.
- Generate audit trails that support stronger Know-Your-Customer (KYC), Anti-Money Laundering (AML), and Counter-Terrorist Financing (CTF) processes.
This dual approach – Fireblocks to handle technical custody risks and Elliptic to observe behavioral and regulatory risks – is meant to offer Bitunix with a layered defense that appeals to each users and regulators.
$42.5 million in insurance coverage
The security upgrade also includes expanded insurance coverage. By working with Fireblocks and related insurers, Bitunix now advantages from $42.5 million in total coverage for digital asset crime and operational risks.
The policies are intended to cover the next:
- Losses resulting from certain kinds of theft or hacking incidents.
- Operating errors or failures covered by the terms and conditions of the insurance contracts.
This will not be the primary time Bitunix has used insurance as a trust signal. Previous announcements on the exchange's help center detail a separate $5 million policy backed by UK-based partner Nemean Services, and the platform's download page highlights overall insurance-backed security for user funds.
Combined, the brand new $42.5 million in coverage, along with existing agreements, is meant to present users the peace of mind that even rare but serious incidents will be handled without the total cost being passed on to customers.
Building on an existing security stack
The Fireblocks and Elliptic integrations will not be deployed in a vacuum. Bitunix has previously worked with custodians and security firms reminiscent of Cobo Custody and audit providers reminiscent of Hacken and Salus, while promoting a 1:1 proof of reserves and a dedicated risk reserve fund.
The exchange is positioning this broader stack as a security “layer cake” consisting of:
- Secure storage (now enhanced with Fireblocks MPC).
- On-chain monitoring and risk assessment (now boosted by Elliptic KYT).
- Third-party audits and penetration testing.
- Insurance protection as a final resort.
By highlighting these elements together, Bitunix effectively presents itself as a venue that mixes the speed and features of a derivatives-heavy exchange with a risk framework more harking back to a conventional financial institution.
Why this matters in the present market
Centralized exchanges remain a hotspot for security incidents. Industry reports cited in Bitunix's own materials indicate that centralized platforms have suffered lots of of thousands and thousands of dollars in losses in recent months, at the same time as decentralized protocols have improved their very own resilience.
In this context, security has turn into a competitive differentiator, particularly for:
- Institutional clients requiring documented custody and compliance standards.
- Retail users who’ve experienced high-profile collapses and hacker attacks across the industry.
By targeting household names like Fireblocks and Elliptic and publicly stating specific insurance numbers about its stack, Bitunix is attempting to maneuver from general claims of being “secure” to concrete, verifiable measures that due diligence teams can review.
Diploma
Bitunix's decision to integrate Fireblocks and Elliptic, backed by $42.5 million in digital asset crime and operational risk insurance, represents a transparent try to bring its security stack to institutional standards.
MPC-based custody, real-time AML verification and concrete insurance limits don’t eliminate risk, but give users and potential partners more options for evaluation than simply marketing slogans. For an exchange competing in a crowded field, this mixture of infrastructure and coverage might be a big advantage – assuming Bitunix consistently implements it in its day-to-day operations.
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