WazirX announced on Saturday that it has made a“socialised loss strategy to distribute the impact equitably among all users”
WazirX, which is a cryptocurrency exchange platform, is rolling out a fund recovery plan based on a user poll the platform will conduct by August 3. Reportedly early this month the crypto exchange lost about $230 million to a cyberattack.
In order to recover from the loss that it made, the crypto exchange will take this initiative as a recovery plan from the mishap that took place earlier.
What happened
According to sources, about 10 days ago the Indian crypto exchange WazirX, faced a massive security breach that led to user fund loss and $230 million in withdrawals.
WazirX announced on Saturday that it has made a“socialised loss strategy to distribute the impact equitably among all users”. It eventually meant that the loss of $230 million will be divided amongst its users. The recent cyberattack resulted in the theft of about $230 million which is equivalent to 45 per cent of the crypto platform user funds. In response to the theft, the platform aims to be dedicated to navigating this situation with utmost transparency and fairness.
In an official blog, WazirX explained that “We are implementing a fair and transparent socialised loss strategy to distribute the impact across all users equitably.” However, the exact cause for the mishap is yet to be identified. The blog highlighted that WazirX’s preliminary investigation found no evidence that its signer machines were compromised. The company further claimed that the incident took place due to its wallet service provider Liminal.
Safety measures taken
After facing such a loss and backlash from users, WazirX has come up with the recovery plan. WzirX said that for users who lost their crypto investment portfolio, the company will create an unlocked portion of 55 per cent of the user’s investment. This is expected to be done by deriving the value from assets available on the platform.
WazirX said it will use a combination of existing tokens available on the platform to create a crypto portfolio. It aims to recover up to 55 per cent of the lost value, for users who have lost between 45 per cent and 99.9 per cent of their tokens. As reported by the firm, users’ funds in Indian rupee are not affected. So, these users do not register a vote as part of the recovery plan.
Furthermore, the announcement of the recovery plans comes days after the initial security breach was detected on the platform. Since then WazirX has temporarily paused trading and withdrawals for users on its platform.
Source:financialexpress.com