WazirX Hack News Arkham Bounty North Korea Hackers

Business

Indian Exchange to Lock 45% Assets In Recovery Plan – Crypto News

Published

2 years ago

July 27, 2024

Dripp

Indian crypto exchange WazirX which faced a massive hack earlier this month has come up with a user compensation plan by implementing a “fair and transparent” socialized loss strategy and thus distributed the impact across all users equally.

WazirX User Compensation Plan

The hacked crypto exchange has come up with a unique 55/45 approach that provides a faster and more flexible solution for funds recovery. With this approach, WazirX would give users immediate access to a significant portion of their asset with the possibility of more recovery going ahead for those who choose to way.

Wazirx founder Nischal Shetty said Thus, WazirX has proposed two options to users in order to manage the remaining crypto assets:

55% of the crypto assets would be available to users for trading or withdrawals.
The rest 45% will be converted to a USDT-equivalent token and locked.

For both these options, WazirX will create a balanced portfolio for the 55% unlocked portion using a mix of crypto assets derived from other available crypto assets on the platform. If 55% of the user-unlocked portfolio includes affected tokens, WazirX will balance it by replacing the affected portion through a basket of unaffected crypto assets available on the platform. In its official blog post, WazirX noted:

“By socializing the loss, we ensure fairness across our user base and preserve the exchange’s stability. This approach balances quick access for some with potential recovery for others, aiming to resolve the situation more efficiently than traditional proceedings”.

Also Read: WazirX Founder Discloses New Details On Fund Recovery

Recovery Efforts Continue

Nischal Shetty said that the exchange’s recovery efforts are in place and they are working with other partners taking external help. Besides, the exchange is also considering other options like airdrops, new token use cases, etc.

“Recovery of such a large amount takes a longer time period. By socialising the loss similar to how other impacted exchanges have done in the past, we are in a position to open up the platform sooner for everyone,” added Shetty.

Also Read: VanEck Teases Solana ETF Again As SOL Surpasses BNB for 4th Spot