WazirX Loss Strategy: Indian Cryptocurrency Exchange To ‘Socialise’ USD 230 Million Loss From Recent Security Breach Among Its Customers, Says Report
Indian cryptocurrency platform WazirX announced a new loss strategy after last week's security breach. The Mumbai-based firm said it would 'socialise' USD 230 million loss among its customers.
Mumbai, July 28: WazirX announced its new plan to socialise its USD 230 million loss from the recent security breach, which caused it to stop trading on the platform. The Indian cryptocurrency platform's recent decision to distribute the losses among its customers reportedly sent shockwaves to the crypto community.
WazirX, a Mumbai-based crypto exchange, suffered "India's largest crypto heist", which made it stop all its trading operations, according to a report by TechCrunch. Due to such a massive security breach, WazirX began its investigations, including forensic data examinations and security audits, to ensure the safety of the users on the platform. It invited white hat hackers, cybersecurity professionals, and forensic experts worldwide to help resolve the issues. GitHub Under Attack: Cybercriminal Targets Millions of GitHub Users Through Ghost Accounts Distributing Malware, Earns USD 1,00,000, Says Report.
After cyber attackers compromised half of its reserves, WazirX proposed a new strategy that would help it resume operations within a week while executing the "fair and transparent socialised loss strategy." Following this, the firm would distribute the impact "equity" among its crypto users. This move will also impact the customers who are unaffected by the security breach. Implementing this strategy, the Indian cryptocurrency exchange would reportedly "rebalance" the customer portfolios.
The report said that this move will result in the users' 100% tokens in the 'not stolen' category getting 55% of their tokens back while locking the rest of 45% in USDT-equivalent tokens. While this move to socialise USD 230 million of security breach losses among customers, WazirX offered two options to cryptocurrency customers. Amazon Smartphone Exchange Scam: X User Warns About Rabbit Exchange App Scam, Shares Experience of Exchanging His Redmi Note 13 Pro for OnePlus 12 on Amazon.
Option A would let customers trade and hold their cryptocurrency assets, restricting withdrawals but promoting recovery. Option B would let customers withdraw their crypto assets, but the firm would still focus on those who chose Option A for recovery. The platform said customers could switch to Option A anytime before trading or withdrawing.
(The above story first appeared on LatestLY on Jul 28, 2024 01:07 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).