In a new development, Indian cryptocurrency exchange WazirX has announced a flexible user compensation and recovery plan. The proposed plan centers on making 55% of user crypto assets available for trading or withdrawals. The remaining 45% will be converted to their USDT equivalent and locked up.
Corroborating the above assertions, WazirX founder Nischal Shetty stated that it is the fastest means to get the platform running again. In addition, the rationale behind the 55/45 approach will ensure proper management of the remaining crypto assets.
The fastest way to open the platform again for operations is to socialise the loss across the crypto portfolios.
— Nischal (Shardeum) 🔼 (@NischalShetty) July 27, 2024
INR wallet balance will not be impacted.
This partial lock is for crypto portfolio balance only.
This is phase 1 so that part of the crypto portfolio is accessible… https://t.co/CYCbwWCwl0
It is no longer news that WazirX suffered a cyber heist, which cost the exchange $230 million. The exchange reported the cyber theft to the Financial Intelligence Unit (FIU) and the Indian Computer Emergency Response Team (CERT-In); however, the culprits remain unknown.
Recovery Plan Details
In the meantime, WazirX has taken a proactive recovery plan approach, which involves socializing the loss among users to ensure equal distribution among all its users. In a blog post, the exchange disclosed that it would create a balanced portfolio for the 55% unlocked portion. The portfolio will stem from a mix of crypto assets obtained from other available crypto assets on the platform.
“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 proceedings.” WazirX posted.
Other Feasible Options
Meanwhile, WazirX’s founder also disclosed that other recovery plans are in place to ensure the recovery of the stolen funds, including collaborations with several platforms. Additionally, the exchange is considering other options, including airdrops, new token use cases, etc.
Nonetheless, it is worth noting that recovering such a large amount of stolen funds could take time. Therefore, users should stay calm, as WazirX’s current initiative was implemented successfully by several platforms that have suffered similar fates.