WazirX halts plan of sharing $230m loss among users

• Published On: 05 August 2024 at 05:16

WazirX, India's largest cryptocurrency exchange, has abandoned plans to divide the $230 million loss caused by a catastrophic hack incident among all users.

To lessen the impact of the $230 million loss, the bitcoin exchange proposed a 55/45 proposal, which would have divided the loss among all platform users.

The project's community was incensed by the concept, which was unveiled in mid-July, and the exchange apparently abandoned it.

In addition to announcing plans to reopen the exchange, the cryptocurrency exchange conducted a public poll on July 27 to get opinion on the planned strategy.

WazirX commented on the public poll in an X post, expressing its purpose and goals for the community.

"Dear Wazirx Tribe, We appreciate your enthusiastic involvement in our recent poll from July 27, 2024. We would like to stress that this poll is a preliminary step toward understanding your ideas and is not legally binding on users or the WazirX platform.

"We promise you that this poll is not final; it is purely intended to gather your feedback, better understand your perspectives, and then take the best move for the community. Thank you for your helpful feedback.

"Our team is presently examining all of your suggestions to develop a plan that truly serves the community's best interests. We want to create a plan that incorporates your collective voice while ensuring a fair and effective outcome. We are committed to transparency and will keep you informed as we modify our strategy based on your comments.

"As a following step, we will shortly release a feedback form to help us better understand the direction that will best serve the community's interests. Thank you for your patience and continued support as we collaborate to improve our platform." Wazir X stated on Twitter."

A cyberattack on WazirX's Multi-Sig wallet in July resulted in a loss of $230 million in cryptocurrency. The hacker rapidly shifted the funds, changing the majority of the stolen assets to Ethereum.

The WazirX team described the situation as a Force Majeure incident over which they had no control. However, they promised the community that they were doing everything possible to recover the monies.

The WazirX team referred to the development as an uncontrollable Force Majeure incident. They did, however, promise the community that they were making a genuine effort to retrieve the monies.