After the recent WazirX attack, which caused $230 million in losses, the solution proposed by the cryptocurrency exchange to deal with the losses was opposed by users.
The crypto community harshly criticized the company's plan, known as “socialized losses”* or the 55/45 method, especially after a public opinion poll. use shows a majority disapprove of the measure.
User outrage
The proposed 55/45 method sees users only being able to trade 55% of their assets on the Indian exchange while the remaining 45% will be converted into USDT stablecoin or other tokens. These converted tokens will then be locked on the platform. This decision will apply to all users, regardless of whether the hack affected their funds or not.
Source: TakaSacca19744
Polling for the 55/45 approach, which began on July 27 and ended on August 3, showed a backlash against the proposal. Users expressed disappointment and dissatisfaction with the plan, feeling that it unfairly impacts all users instead of addressing those who have suffered losses from the hack.
A user named @aaakasei has expressed dissatisfaction on social media, suggesting drastic measures against WazirX CEO Nischal Shetty:
“…My suggestion to Nischal Shetty: dude, file for bankruptcy, delete X account and launch memecoin…”
Another user, @TakaSacca19744, questioned the exchange's transparency and accountability, asking why the exchange was delaying and being unfair to users by taking so long to provide information and problem solving.
The backlash against the 55/45 approach shows growing frustration and unrest among WazirX users, many of whom are unable to withdraw their funds. The exchange's handling of the hack and subsequent communications have left its entire user base feeling vulnerable and uncertain about the future of their investments.
However, WazirX co-founder Nischal Shetty has emphasised that the poll is just a means of gathering community input, not a legally binding decision. The Indian cryptocurrency exchange has also refuted TruthLabs' allegations regarding security vulnerabilities that allegedly led to the $230 million hack, denying any flaws in the measures their security.
*Socialized losses are a method in which an organization or system divides financial losses among all members or users rather than being personally responsible for losses. In a financial or cryptocurrency context, this could mean that everyone bears some of the financial burden when a failure or loss occurs, rather than just those directly affected.
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