- WazirX suffers a $230 million hack on July 18, affecting 45% of reserves.
- Users surveyed to choose between limited trading or partial withdrawal.
- Recovery plan aims to distribute the loss across all customers.
- Police complaint filed in a country with no crypto laws.
The Shocking WazirX Hack and User Impact
On July 18, WazirX, one of India’s prominent cryptocurrency exchanges, fell victim to a massive hack. The cyberattack resulted in a staggering $230 million loss, accounting for nearly 45% of the platform’s total reserves. This incident has sent shockwaves through the crypto community, leaving users in a state of uncertainty.
To manage the aftermath, WazirX has taken some critical steps. The exchange filed a police complaint in a country with no established crypto regulations, highlighting the challenges in addressing cybercrime in the digital asset space.
User Choices: Limited Trading or Partial Withdrawal
In response to the hack, WazirX surveyed its users to decide on the best course of action. They presented two options:
- Option A: Users can trade 55% of their funds but cannot withdraw them.
- Option B: Users can both trade and withdraw 55% of their funds.
This approach aims to involve users in the decision-making process, ensuring transparency and some degree of control over their affected assets. However, it also underscores the severity of the situation, as users are forced to choose between limited access and partial liquidity of their funds.
Recovery Plan: Distributing the Loss
WazirX’s recovery plan focuses on mitigating the impact of the $230 million security breach by distributing the loss among all its customers. The exchange will deduct tokens proportionally from all user accounts to rebalance portfolios affected by the hack.
This method, while controversial, aims to stabilize the platform and ensure that users with more than 45% of stolen tokens in their portfolios do not bear the brunt of the loss alone. By spreading the impact, WazirX hopes to maintain trust and keep its operations afloat during this turbulent period.
