Coindcx CEO Sumit Gupta criticizes Wazirx’s handling of a recent $230 million cyberattack, urging the exchange to take responsibility and avoid making customers absorb 45% of the losses.
Bollywood Fever: Sumit Gupta, CEO of the Indian crypto exchange Coindcx, has voiced strong criticism against Wazirx’s response to a recent $230 million cyberattack. Gupta expressed his concerns on social media platform X on Monday, urging Wazirx to take responsibility rather than making customers directly absorb 45% of the losses.
Wazirx is currently working to recover stolen funds and reopen its platform for withdrawals and trading. The exchange announced a socialized loss strategy to distribute the impact across all users equitably, with a 55/45 approach, which they claim offers a faster and more flexible solution. Additionally, Wazirx has set up a poll for user participation regarding the reopening of the platform.
Gupta criticized this approach as not being community-first, which he believes will negatively impact Wazirx. “Hate to be saying this, but the way Wazirx is handling this entire situation isn’t community-first and this IMO won’t go down well for them,” he stated. He emphasized that the first contribution to losses should come from the company itself, including its treasury and assets.
“I have not seen any such commitment around this from the company side,” Gupta added. “Instead, making customers directly absorb the 45% losses is utter nonsense. The poll options are also framed in a manner to protect the business first and not the customers.” He concluded with a call for Wazirx to reconsider their approach and prioritize doing what is right for their customers.
Wazirx has been providing daily updates on its recovery efforts, addressing user concerns about recovery options, asset valuation, and USDT conversion. The exchange claims that its signers’ machines show no evidence of compromise and asserts that INR funds remain secure. To recover stolen assets, Wazirx has launched a $23 million bounty program. Legal action is being pursued, and Wazirx continues to assure users of the platform’s security.
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