- WazirX faced strong pushback after announcing plans to disclose damages from a cyberattack that occurred earlier in July.
- About $230 million in funds were removed from the exchange as a result of the incident.
After revealing on Saturday that it would implement a socialized loss policy in the wake of the security breach on July 18 that cost it around $230 million, or 45% Indian cryptocurrency exchange WazirX is coming under fire for some of its holdings.
Furthermore, WazirX allegedly launched a survey asking users to select between two options: accessing five-fifty percent of their money without allowing them to be withdrawn and receiving first dibs on any possible recovery funds, or accessing fifty percent of their money with the option to withdraw and receiving second dibs on any potential funds. The final 45% would be locked and converted to USDT.
Both WazirX and Shetty posted on X on Monday after facing a lot of criticism, clarifying that the poll was only meant to get their users’ opinions and was not legally binding.
Currently, our staff is going over all of your suggestions to make sure the plan is really in the best interests of the community. The exchange stated, “We want to create a strategy that takes into account your feedback as a group and guarantees a just and efficient resolution.”
After that, on Monday, Shetty posted a video to X in which he reiterated that the vote was non-binding and defended the option of socializing the losses because it would enable the exchange to reopen and continue operating for its users while continuing to look into other options for recovering the lost tokens and compensating impacted users.
However, a lot of people have criticized the strategy for penalizing platform users for the incident. According to CoinDCX co-founder Sumit Gupta, the corporation ought to bear the primary burden of losses.
It is absurd to force customers to bear the full 45% of the losses. According to Gupta, the poll options are likewise designed to safeguard the company rather than the consumer.
Along with 20 million Matic tokens ($11 million), 640 billion Pepe tokens ($7.5 million), 5.7 million USDT, and 135 million Gala ($3.5 million), the hacker took almost $100 million in Shiba Inu. This resulted in the exchange stopping trading. According to other accounts, the hack may have been carried out by the state-sponsored Lazarus Group of North Korea, making it unlikely that the monies would be recovered.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
