Jul 27, 2024
According to Cointelegraph. In response to the recent cyberattack that led to the theft of approximately $230 million, Indian cryptocurrency exchange WazirX has introduced a fair and transparent socialized loss strategy for recovering user funds.
The hack affected 45% of user funds, prompting WazirX to adopt an equitable approach to minimize disruption to its users and maintain the platform's stability.
Approach to Loss Distribution
In a recent blog post, WazirX revealed a 55/45 recovery strategy. This plan allows users to immediately access 55% of their assets while locking the remaining 45% in Tether (USDT) equivalent tokens.
This method offers a stark contrast to the prolonged uncertainty typically associated with such incidents. By socializing the loss, WazirX aims to distribute the impact evenly across all users, preventing any single group from bearing an undue burden. This approach is expected to enable a faster and more flexible resolution compared to traditional methods.
WazirX is providing users with two distinct options for managing their remaining assets, each with specific benefits and conditions. These options will be communicated to users via the WazirX app or website.
According to the exchange, registered users will receive detailed instructions via email, guiding them through the process of selecting their preferred option. The deadline for responses is August 3, 2024, at 7:00 am India Standard Time.
Asset Management Strategy
While the poll regarding these options is not legally binding, the results, along with ongoing investigations and the platform's liquidity, will influence the final decision. By participating in the poll, users acknowledge that they have read and unconditionally agree to the terms, remaining bound by WazirX’s Terms of Use.
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