WazirX, the cryptocurrency exchange that lost $230 million in a cyberattack, is implementing a fund recovery plan based on a user survey the platform will conduct before August 3.
For the first time on an Indian cryptocurrency exchange, WazirX will socialize the loss and distribute its impact across all users of the platform.
“We are implementing a fair and transparent socialized loss strategy to distribute the impact across all users equitably. In similar situations, users have often faced years of uncertainty and limited access to funds. Our 55/45 approach offers a faster and more flexible solution,” the company said in a blog post.
The cryptocurrency firm said that 55 percent of users’ crypto assets on the platform will be available for trading and/or withdrawals. Therefore, if a user was not affected by the cyberattack, even then their wallet will have access to only 55 percent of their assets.
“Users who have 100 percent of their tokens in the ‘not stolen’ category will receive 55 percent of those tokens back. The remaining 45 percent will be converted into USDT-equivalent tokens and locked. This is part of our socialized, fair and transparent loss strategy to distribute the impact equitably,” the company said.
WazirX will convert the remaining 45 percent of user assets into Tether-equivalent tokens and lock them up.
For users who lost their cryptocurrency investment portfolio, the company will create an unlocked portion of 55 percent of the user’s investment by deriving the value of the assets available on the platform.
WazirX said it will use a combination of existing tokens available on the platform to create a cryptocurrency wallet, representing 55 percent of the lost value, for users who have lost between 45 percent and 99.9 percent of their tokens.
The time required to unlock tokens locked on the platform is not defined.
“Unlocking the locked tokens will be subject to ongoing recovery efforts. This includes tracking and recovering stolen assets, working with partners to cover the shortfall, and exploring compensation methods, including potential airdrops,” the firm said.
Meanwhile, the firm said that users’ funds in Indian rupees are not affected and these users do not register a vote as part of the recovery plan.
The announcement of the recovery plans comes days after the initial security breach on the platform was detected.
WazirX has since temporarily suspended transactions and withdrawals for users of its platform.
In a blog post last week, the company’s preliminary investigation found no evidence that its signing machines were compromised, while shifting the blame to its wallet service provider Liminal.
First published: July 28, 2024 | 17:55 IS
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