WazirX, one of India’s leading cryptocurrency exchanges, recently faced significant controversy following a hack that resulted in substantial losses. The exchange, in response, proposed a plan to socialize these losses among its users, also known as the 55/45 approach. However, after encountering considerable resistance in a community poll, WazirX in an announcement, has decided to abandon this strategy.
WazirX Community Disapproves its Plans
The 55/45 approach suggests that the exchange will unlock 55% of users’ assets and keep the remaining 45% locked in Tether equivalent tokens. This proposal was intended to mitigate the hack’s impact, ensuring that no single user bore the brunt of the losses alone.
WazirX conducted a community poll from July 27 to August 3rd, 2024, to gauge user sentiment. Unfortunately, the poll, intended to give users a voice in decision-making, revealed widespread dissatisfaction and disapproval of the distribution approach. Despite the rejection, the exchange has assured its users that it is exploring alternative solutions to address the losses incurred from the hack.
WazirX Response to Attack
After the attack on the Indian exchange, it launched a bounty program, aimed at freezing and recovering stolen assets. This initiative is part of the exchange’s broader strategy to trace and effectively retrieve the stolen funds. Also, WazirX notified over 500 other exchanges to block the addresses associated with the stolen funds.
The exchange also filed a police complaint and reported the incident to the Financial Intelligence Unit (FIU) and CERT-In. Furthermore, the team analyzed data to understand the extent of the damage caused by the attack. This is crucial for formulating an effective recovery plan and ensuring measures are taken to address the impact on customer funds.
Binance Officially Terminates Relationship With WazirX
Last year, WazirX continued its verbal tug-of-war with the world’s leading digital assets service provider Binance over its ownership. As such, Binance declared that it would not provide wallet services for WazirX and its customers. The exchange mandated that WazirX withdraw all of its funds from the exchange.
The feud began in 2022 when Nischal Shetty, the co-founder of the exchange made a public announcement, stating that Binance had acquired its trading platform. However, Changpeng Zhao, ex-CEO of Binance argued that his company “never completed” the acquisition deal. Hence, they were only partners and nothing more.
Attempting to clarify their relationship, CZ said Binance was only responsible for providing wallet service and an off-chain transaction solution to WazirX. Shetty insisted that Binance was not truthful, as it is the owner of the company’s domain name. Markedly, this verbal battle happened amidst a lawsuit against WazirX by Indian authorities.
The post India Crypto Exchange WazirX Abandons Hack Remedial Plans appeared first on TheCoinrise.com.
