WazirX has announced a controversial plan to distribute a $230 million loss from a recent security breach among its users, implementing a “fair and transparent socialized loss strategy.”
Points
- WazirX plans to distribute $230 million hack loss among users.
- The breach affected nearly half of the exchange’s reserves.
- Two recovery options provided for affected users.
WazirX, a leading Indian cryptocurrency exchange, has announced a controversial plan to distribute a $230 million loss among its users following a significant security breach. The Mumbai-based company halted trading last week after a cyber attack compromised nearly half of its reserves, marking India’s largest crypto heist to date.
WazirX Plans to Share Breach Loss: On July 18, blockchain security firm Cyvers detected suspicious activity originating from WazirX’s Safe Multisig wallet on the Ethereum network. In response, WazirX suspended its platform operations, filed a police report, and notified the Financial Intelligence Unit （FIU） and CERT-In.
To address the fallout, WazirX plans to resume operations within a week, implementing a “fair and transparent socialized loss strategy.” This approach involves rebalancing customer portfolios, returning only 55% of their holdings, and locking the remaining 45% in USDT-equivalent tokens. Notably, this affects even those users whose assets were not directly stolen.
WazirX offers two recovery options:
– Option A: Allows users to trade and hold assets, prioritizing them in recovery efforts but restricting withdrawals.
– Option B: Permits trading and withdrawals but places users at a lower priority for recovery.
解説
- The distribution of losses among users is a controversial but necessary step to address the impact of the security breach.
- Offering recovery options provides users with flexibility, though it may not fully mitigate the losses incurred.
- The incident highlights the importance of robust security measures and the challenges faced by exchanges in safeguarding user assets.
- Users should consider their recovery options carefully and stay informed about further updates from WazirX.