Indian crypto exchange WazirX, which recently suffered a massive hack resulting in the loss of over $230 million in users’ funds, has proposed a controversial recovery plan. This plan involves distributing the financial impact of the loss across all WazirX users, which has sparked significant backlash from the local crypto community.
Controversial Recovery Plan
On July 27, WazirX presented a poll to its users, offering two options:
Option A: Users can trade and hold their crypto with priority for recovery but cannot withdraw it. Option B: Users can trade and withdraw their crypto but will have lower priority for recovery. Users can switch to Option A before making trades or withdrawals.
The poll will conclude on August 3. WazirX stated in a post on X that they are reviewing user feedback to devise a plan that aligns with the community’s best interests, aiming to ensure a fair and effective outcome. CEO Nischal Shetty clarified that the poll is not legally binding.
Criticism from the Crypto Community
Sumit Gupta, CEO and founder of CoinDCX, criticized WazirX’s approach, stating that it is not community-first and could harm the broader ecosystem. He expressed concerns about the impact on other participants within the crypto community.
Appeal to Binance for Assistance
According to a report from MoneyControl, WazirX has approached former partner Binance for help in compensating customers affected by the cyberattack. Binance controls around $80 million worth of WRX tokens as of the hack date. Currently, WazirX cannot use its own funds to cover some of the stolen customer assets. This appeal for assistance follows a controversial fallout that ended the partnership between the two exchanges.
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