WazirX Unveils Recovery Plan After $230M Hack
YEREVAN (CoinChapter.com) — In response to a recent cyberattack that stole approximately $230 million, Indian crypto exchange WazirX has unveiled a recovery plan for exchange users. Consequently, this plan aims to address the impact on user funds and maintain platform stability.
WazirX Implements 55/45 Strategy for Immediate Asset Access
In a blog post, the company announced a 55/45 strategy. Users will have immediate access to 55% of their assets, while the remaining 45% will be locked in Tether (USDT)-equivalent tokens. This approach contrasts with the prolonged uncertainty often seen in similar scenarios. By socializing the loss, the firm distributes the impact evenly across all users.
WazirX’s decision provides immediate access to more than half of the assets. This method aims for a faster and more flexible resolution.
WazirX Sets Deadline for Users to Choose Asset Management Option
WazirX offers users two options for managing their remaining assets. Each option has specific benefits and conditions, shared through the WazirX app or website. Registered users will receive detailed instructions via email, guiding them through selecting their preferred option. The response deadline is Aug. 3, 2024, at 7:00 am India Standard Time.
While the poll is not legally binding, the results, ongoing investigations, and the platform’s liquidity will influence the final decision. By participating, users agree to the terms and WazirX’s Terms of Use.
WazirX Plans Diversified Crypto Portfolio for User Asset Recovery
The firm will create a diversified portfolio with a basket of crypto assets for the unlocked 55% of users’ assets. This strategy mitigates the impact on users whose portfolios contain affected tokens. If the unlocked portion includes affected tokens, they will be replaced with unaffected crypto assets.
The value of the unlocked portfolio will be calculated based on average prices from CoinMarketCap and select global exchanges as of July 21, 2024, at 8:30 pm IST. The company also announced that operations will resume shortly after users have completed the poll.
Second-Largest Exchange Breach After DMM Exploit
The WazirX breach resulted in a significant loss of approximately $235 million, making it the second-largest hack of a centralized exchange recently. However, this incident is surpassed only by the DMM exploit on May 31, which saw a loss of $305 million. Consequently, the firm aims to apply the best practices from past incidents like the Mt. Gox and Bitfinex hacks for a fair resolution.
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