In light of the recent cyberattack resulting in a $230 million loss, Indian crypto exchange WazirX has announced a fair and transparent fund recovery plan to mitigate the impact on its users. Drawing lessons from past incidents like the Mt. Gox and Bitfinex hacks, WazirX aims to ensure a fair and efficient resolution.
Addressing the Cyberattack
The hack, which affected 45% of user funds, prompted WazirX to adopt a socialized loss strategy to minimize disruption and maintain platform stability. This approach distributes the impact evenly across all users, preventing any single group from bearing an undue burden.
In a blog post, WazirX detailed its 55/45 approach. Users will have immediate access to 55% of their assets, while the remaining 45% will be locked in Tether-equivalent tokens. This method contrasts with the prolonged uncertainty seen in similar cases, facilitating a faster and more flexible resolution.
WazirX offers two options for managing the remaining assets, each with specific benefits and conditions. Users will receive detailed instructions via email and can choose their preferred option through the WazirX app or website by August 3, 2024, at 7:00 am IST.
Also Read: WazirX Launches Bounty Program to Recover Stolen Assets
Asset Management Strategy
The final decision will be influenced by the poll results, ongoing investigations, and the platform’s liquidity. Users acknowledge their agreement to WazirX’s Terms of Use by participating in the poll.
To ensure fair distribution, WazirX will create a diversified portfolio with the unlocked 55% of users’ assets, replacing affected tokens with unaffected crypto assets. The portfolio value will be based on average prices from CoinMarketCap and select global exchanges as of July 21, 2024, at 8:30 pm IST.
Operations will resume shortly after users complete the poll to select their preferred asset management option. The WazirX breach, resulting in a $230 million loss, is the second-largest hack of a centralized exchange recently, following the $305 million DMM exploit on May 31.
