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Highlights
- WazirX's 55/45 approach faces setback.
- The Indian exchange drops plans to move ahead with the proposal following backlash faced with poll.
- Co-founder Nischal Shetty gauges in on community feedback.
In the latest WazirX hack updated after the $230 million exploit, the exchange has decided to scrap its plan of socializing losses. The firm’s plan to socialize losses, also known as the 55/45 approach, has encountered severe backlash from the crypto community. Following a poll set up at the end of the previous month, the chances of the abovementioned approach gaining traction became extremely dull. Meanwhile, the platform’s colossal user base, who are currently unable to withdraw their funds, remain shrouded in a cloud of uncertainty.
WazirX Hack Update: No Clear Developments To Offer Users Relief
The latest WazirX hack update emerges as a setback for the platform’s colossal user base. The poll for the 55/45 approach that began on July 27 concluded on August 3, with a tidal wave of backlash engulfing the proposal.
Notably, the plan to socialize losses, aka the 55/45 approach, was aimed at allowing customers to trade only 55% of their assets on the Indian exchange. Whilst, the remaining 45% of the assets were proposed to be converted into USDT stablecoin or other tokens. The converted tokens will be locked on the platform.
This decision was proposed for every user, irrespective of whether their funds had been stolen. The plan’s unclear and ineffective rationalization have presented the crypto exchange with quite a backlash.
In the interim, a source familiar with the matter stated, “The plan wasn’t final. So, to restart operations, the exchange had to chart a forward path and reached out for the community’s feedback. After the blowback, WazirX decided to go slow on it,” according to a report by MoneyControl.
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More Details On The Hack
Meanwhile, Nischal Shetty, the co-founder of WazirX, recently clarified that the poll was not legally binding but instead was intended to gauge in on community feedback. Additionally, the Indian cryptocurrency exchange also recently denied accusations of security lapses by TruthLabs that allegedly led to a massive $230 million hack.
Notably, 45% of the users on the platform are currently stranded, impacted by the stolen funds. Whilst, the remaining are left hanging with their assets frozen on the WazirX exchange.
Also, Shetty earlier revealed that Indian exchange already submitted concerned records to CERT-In. Further, it is also working with the FIU (Finance Intelligence Unit) and other government agencies in order to bring a solution for users.
Meanwhile, in a recent post shared on X by the co-founder, it was pointed out that the Indian exchange needed more time for bringing apt solutions for users. Shetty clarified that the platform is constantly working on tangible solutions, reassuring users of a safer future.
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