NEW DELHI, Friday, August 02, 2024 – Indian cryptocurrency exchange WazirX is under fire for its proposed recovery plan following a massive hack that resulted in the loss of over $230 million in user funds.
WazirX has also reportedly approached its former partner Binance for financial assistance, according to MoneyControl.
Binance holds around $80 million worth of WRX tokens, could potentially contribute to a bailout for affected WazirX customers.
The two exchanges had a contentious breakup earlier this year.
The exchange’s strategy, which involves distributing the financial burden of the hack to all users, has sparked criticism from the crypto community.
WazirX presented its users with a two-option poll on July 27. Option A prioritized recovery efforts for the stolen funds but restricted users from withdrawing their crypto assets. Option B allowed users to trade and withdraw their crypto but placed them at a lower priority for recovery efforts.
The exchange claims the poll is a preliminary step to gauge user sentiment and is not legally binding.
This approach has drawn criticism from industry leaders like Sumit Gupta, CEO of CoinDCX, who believes WazirX should prioritize user interests and explore other avenues for compensation. Reports also suggest WazirX has reached out to former partner Binance for assistance, though details remain unclear.
WazirX is currently reviewing user feedback and aims to develop a “fair and effective” recovery plan.
The company faces a crucial challenge in regaining user trust while navigating a complex financial situation.
