Following a significant hack, WazirX introduces a recovery plan involving the freezing of 45% of assets to distribute losses fairly among users.
Points
- Overview of the hack and its impact
- Details of the “55⁄45” recovery plan
- Options for managing remaining assets
In response to a severe cyberattack that led to the theft of approximately $230 million, Indian crypto exchange WazirX has launched a fair and transparent socialized loss strategy for user fund recovery. This strategy aims to distribute the loss evenly among all users, ensuring that everyone shares the burden.
The exchange is implementing a “55⁄45” approach to expedite and enhance the recovery of funds. This strategy allows users to access 55% of their assets for trading or withdrawals immediately, while the remaining 45% will be converted into a USDT-equivalent token and locked.
To ensure fairness and stability, WazirX will create a balanced portfolio for the 55% of assets that are unlocked. This portfolio will use a mix of available crypto assets on the platform. If the unlocked portion includes affected tokens, WazirX will replace them with unaffected assets from its platform. In an official blog post, WazirX explained:
“By socializing the loss, we ensure fairness across our user base and preserve the exchange’s stability. This approach balances quick access for some with potential recovery for others, aiming to resolve the situation more efficiently than traditional methods.”
Users will receive detailed instructions via email, guiding them through the process of selecting their preferred option for managing their remaining assets. The deadline for response is August 3, 2024, at 7:00 am IST. While the poll results are not legally binding, they will influence the final recovery strategy, taking into account ongoing investigations and the platform’s liquidity.
解説
- Recovery plan: WazirX’s “55⁄45” strategy aims to distribute the financial loss evenly among all users, providing immediate access to a portion of their assets.
- Fair distribution: The plan ensures fairness by creating a diversified portfolio for the unlocked 55% of assets, replacing affected tokens with unaffected ones.
- User involvement: Users are encouraged to participate in the recovery process by selecting their preferred asset management option, influencing the final strategy.