Indian crypto exchange WazirX has announced a plan to address the recent $230 million cyberattack that impacted 45% of user funds. The exchange aims to implement a “socialized loss strategy” to distribute the impact fairly across its user base.
As per the July 27 blog post, WazirX plans to allow 55% of user crypto assets for trading or withdrawal while securing the remaining 45% as tokens equivalent to USDT. This strategy gives users immediate access to the majority of their funds while keeping the potential for future recovery intact.
The exchange presented users with two options to manage their assets. Detailed instructions are accessible through the WazirX app and website. Regardless of the option chosen, WazirX will curate a well-balanced portfolio for the portion that is available, utilizing the variety of crypto assets on its platform.
WazirX has underlined its dedication to continuous recovery initiatives, including the consideration of airdrops. The determination of the value in unlocked portfolios will be based on the average prices listed on CoinMarketCap and selected exchanges as of July 21, 2024.
WazirX deadline for user decision: Aug. 3, 2024
Users have until Aug. 3, 2024, to make their choice. The platform clarified that although the survey holds no legal obligations, its outcomes will play a role in the ultimate verdict, along with other factors under consideration.
The plan affects all crypto holdings, including non-ERC20 tokens like Bitcoin. However, Indian rupee (INR) balances remain fully accessible. Nevertheless, this approach mirrors the strategies employed by Mt. Gox and Bitfinex in response to significant breaches.
However, WazirX seeks to strike a balance between immediate access for select users and potential future recovery for others. It aims to address the issue more efficiently than via standard legal proceedings.
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