The post WazirX implements ‘socialized loss strategy’ following $235m hack appeared on BitcoinEthereumNews.com.

Indian crypto exchange WazirX has unveiled a plan to mitigate the effects of a recent hack that resulted in the loss of approximately $235 million. The breach, which affected 45% of user funds, has led the exchange to introduce what it’s calling a “socialized loss strategy” to ensure what it calls a more equitable resolution for its users and maintain platform stability. WazirX’s July 27 blog post states that the firm plans to implement a 55/45 approach, where users can access 55% of their assets immediately, while the remaining 45% will be locked in Tether (USDT)-equivalent tokens. The exchange says its strategy aims to distribute losses fairly among all users, preventing disproportionate impacts on any single group. According to correspondence that WazirX sent to affected users — a copy of which was shared with crypto.news —  the exchange presented a poll with two options to recover stolen funds. “Option A” lets users access 55% of their funds “for trading and deposits,” without withdrawal rights, but gives them priority in potential recovery proceeds. “Option B” lets users withdraw 55% of their assets “in a staggered manner,” albeit with lower priority in the recovery queue. In both cases, WazirX states that the remaining 45% of user assets will remain locked on the exchange as “USDT-equivalent tokens,” which would only be returned to users if the firm succeeds in recovering the stolen funds. Recovery options that WazirX sent to affected users | Source: crypto.news In their post, the exchange requested that affected users vote for their preferred option by Aug. 3, 2024. According to poll results shared with the crypto.news team, at the time of writing, approximately 62% of the impacted users have selected Option B, which lets them make withdrawals. The other 38% have decided against this, choosing instead to forego immediate withdrawals…

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Filed under: News - @ July 28, 2024 9:22 am