Learning from the Mt. Gox and Bitfinex hacks, WazirX introduces fund recovery plans to use the best practices from these incidents to resolve the situation fairly and efficiently.
Following a recent cyberattack that stole about $230 million, Indian crypto exchange WazirX has introduced a fair and transparent recovery plan to help users get their funds back.
The hack affected 45% of user funds, leading WazirX to take a fair approach to minimize disruption for its users and maintain the platform’s stability.
Poll insights to guide WazirX’s asset recovery strategy
In a recent blog post, WazirX unveiled its 55/45 recovery plan. Users will have immediate access to 55% of their assets, while the remaining 45% will be held in Tether (USDT) tokens.
Unlike the prolonged uncertainty seen in similar cases, this approach evenly distributes the impact across all users, preventing any group from shouldering too much burden. WazirX believes this strategy will lead to a quicker and more efficient resolution.
WazirX is giving users two options for handling their remaining assets, each with its own benefits and conditions. These options will be shared through the WazirX app or website.
Registered users will get detailed instructions via email on how to choose their preferred option. The deadline to respond is August 3, 2024, at 7:00 am India Standard Time.
The poll isn’t legally binding, but the results, ongoing investigations, and the platform’s liquidity will shape the final decision. By taking part in the poll, users agree to WazirX’s Terms of Use.
To ensure fair distribution, WazirX will create a diversified portfolio with a mix of crypto assets for the unlocked 55% of users’ assets. This approach aims to reduce the impact on users with affected tokens. If the unlocked portion includes affected tokens, they will be swapped for unaffected crypto assets to maintain balance.
Unlocking values will be determined by average prices from CoinMarketCap and key global exchanges as of July 21. WazirX also said that operations will resume soon after users complete the poll to choose their asset management option.
The WazirX hack caused a loss of about $235 million, making it the second-largest hack of a centralized exchange recently, after the DMM hack on May 31, which lost $305 million.
