In response to a recent cyberattack, WazirX has announced a fair and transparent socialized loss strategy to recover user funds.
Points
- Overview of the $230 million hack
- Details of the “55⁄45” recovery strategy
- User options for managing remaining assets
In a move to address the recent cyberattack that resulted in the theft of approximately $230 million, Indian crypto exchange WazirX has announced a fair and transparent socialized loss strategy for user fund recovery. This strategy aims to distribute the impact evenly across all users, ensuring that no single group bears a disproportionate burden.
The “55⁄45” model is designed to provide quicker access to funds compared to traditional recovery processes, which often involve lengthy delays. This approach allows users immediate access to 55% of their assets, with the remaining 45% held in Tether （USDT）-equivalent tokens.
To ensure fair distribution, WazirX will create a diversified portfolio with a mix of crypto assets for the unlocked 55% of users’ funds. If the portfolio contains affected tokens, these will be replaced with unaffected assets to maintain balance. The value of this portfolio will be based on average prices from CoinMarketCap and select global exchanges as of July 21, 2024.
Users have two distinct options for managing their remaining assets. Detailed instructions will be sent to registered users via email, and they must respond by August 3, 2024, at 7:00 am IST. While the poll results are non-binding, they will help shape the final recovery plan, considering ongoing investigations and the platform’s liquidity.
解説
- Recovery strategy: The “55⁄45” model ensures quicker access to funds and fair distribution of losses, providing immediate liquidity to users.
- Fair distribution: The creation of a diversified portfolio for the unlocked 55% of assets ensures that affected tokens are replaced with unaffected ones, maintaining balance.
- User involvement: Engaging users in the recovery process through a poll helps shape the final strategy, considering various factors such as ongoing investigations and liquidity status.