Crypto exchange WazirX proposes compensation plan after being hacked! Users can only choose 1 from 2

This site (120bTC.coM): After WazirX suffered a hacker attack, on July 27, it proposed a recovery plan called "Socialized Loss Strategy", but no matter which one you choose, it is equivalent to letting Users themselves face losses from hacker attacks.

WazirX exchange was hacked

On July 18, India’s largest cryptocurrency exchange WazirX suffered a hacker attack. During the attack, the hacker stole ShibaInu ($SHIB), Ethereum ($ETH), Polygon ( $MATIC) and other cryptocurrencies, with a total value of more than $235 million, accounting for almost 50% of the exchange’s total holdings value.

After the incident, WazirX immediately announced the suspension and freezing of all cryptocurrency and fiat currency (Indian rupee) withdrawals, resulting in users being unable to immediately withdraw their assets. This incident affected up to 45% of user funds.

Socialized Loss Strategy: User’s Cruel 2-Choose 1

In order to deal with this crisis, WazirX Exchange chose to propose a recovery plan called "Socialized Loss Strategy" on July 27, with the intention of reducing the losses. Allocate it to users to maintain the stability of the platform.

According to this plan, users must choose one of two options, but no matter which one they choose, it is equivalent to letting users, not the platform, face the losses from hacker attacks. This has also become the most controversial aspect of this incident. Part:

• Option A: Freeze 45% of assets. Users can continue to use the remaining 55% of assets to trade and deposit in the platform, but "restrict withdrawals". Users who choose this option will not be able to exchange assets in the subsequent After recovery, there is priority for compensation.

• Option B: Freeze 45% of assets. Users can continue to withdraw the remaining 55% of assets in a "staggered manner", but after the subsequent exchange assets are restored, they will have a lower priority in compensation.

No matter which option is chosen, the user is directly locked in 45% of the assets. Only when the company successfully recovers the stolen funds will the user be compensated, and the compensation will still be calculated on the evening of July 21st. The price was ridiculed by netizens as "surrender and lose half."

Community reaction and criticism

Unsurprisingly, the announcement of WazirX triggered a strong backlash from the community. Many users believed that this was a great disregard for the security of their assets and also criticized WazirX for holding users accountable. Feeling dissatisfied, CoinDCX co-founder and CEO Sumit Gupta criticized WazirX on At the same time, some users also questioned the authenticity of the attack and called for a legal investigation into WazirX and its director Nischal Shetty to determine whether the incident was the result of hackers or insider planning.

Faced with such pressure, Nischal Shetty, the head of WazirX, emphasized in the X statement on July 29 that this poll is only a preliminary step to collect user opinions and is not legally binding. He also said that the team will decide the next course of action based on the feedback received.

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