Indian cryptocurrency exchange Wazirx has announced the implementation of a socialized loss strategy to distribute the impact of a recent $230 million cyberattack among its users. This move aims to facilitate quicker access to funds and resume platform operations.
Wazirx revealed that 55% of users’ crypto assets will be accessible for trading or withdrawal, while the remaining 45% will be converted to USDT-equivalent tokens and locked. “The fastest way to open the platform again for operations is to socialize the loss across the crypto portfolios,” stated Wazirx co-founder Nischal Shetty.
In a detailed update, Wazirx outlined their post-attack fund management strategy:
- 55% Availability: Users will have immediate access to 55% of their crypto assets for trading or withdrawal.
- 45% Lock: The remaining 45% will be converted to USDT-equivalent tokens and locked.
This strategy is designed to offer a fair and transparent solution, allowing users to regain a significant portion of their assets promptly while maintaining potential recovery for those who choose to wait.
The value of unlocked assets will be determined based on average prices from Coinmarketcap and selected global exchanges as of July 21, 2024, the date when trading was halted. Registered users will receive instructions via email to select their preferred option by August 3, with platform operations expected to resume shortly after.
Nischal Shetty emphasized that INR wallet balances will remain unaffected, with only the crypto portfolio balances being partially locked. He clarified that this strategy marks the beginning of Wazirx’s recovery efforts, not the end. “Our recovery efforts will include working on recovery of stolen assets, finding partners and external help, airdrops/new token use cases etc. We’re also figuring how to help fill this with future profits of the exchange if we are able to grow the business,” Shetty elaborated on social media platform X.
This proactive approach aims to minimize user uncertainty and expedite the platform’s return to normal operations, while Wazirx continues to pursue recovery and growth initiatives.
Also Read other news articles, Russia Advances Bill to Regulate Cryptocurrency Mining, Aims to Curb Illegal Activities
Bitcoin Policy Group Urges U.K. to Retain 61,000 Bitcoins for Economic Stability
Apple Reaches Tentative Agreement with First Unionized Store in the U.S.