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Highlights
- WazirX's recovery plan includes a unique 55/45 approach, with immediate access to 55% funds.
- It will convert the remaining 45% will be converted to a USDT-equivalent token and lock them.
- WazirX founder Nischal Shetty stated that the exchange is actively working on asset recovery, including seeking external help.
After facing a massive hack earlier this month in July, Indian crypto exchange WazirX has come up with a user compensation and recovery plan. The exchange plans to implement a “fair and transparent” socialized loss strategy while distributing the impact across all users equally.
WazirX User Compensation Plan
The hacked crypto exchange has come up with a unique 55/45 approach that provides a faster and more flexible solution for funds recovery. With this approach, WazirX would give users immediate access to a significant portion of their asset with the possibility of more recovery going ahead for those who choose to way.
Wazirx founder Nischal Shetty said Thus, WazirX has proposed two options to users in order to manage the remaining crypto assets:
- 55% of the crypto assets would be available to users for trading or withdrawals.
- The rest 45% will be converted to a USDT-equivalent token and locked.
For both these options, WazirX will create a balanced portfolio for the 55% unlocked portion using a mix of crypto assets derived from other available crypto assets on the platform. If 55% of the user-unlocked portfolio includes affected tokens, WazirX will balance it by replacing the affected portion through a basket of unaffected crypto assets available on the platform. In its official blog post, WazirX noted:
“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”.
Also Read: WazirX Founder Discloses New Details On Fund Recovery
Recovery Efforts Continue
Nischal Shetty said that the exchange’s recovery efforts are in place and they are working with other partners taking external help. Besides, the exchange is also considering other options like airdrops, new token use cases, etc.
“Recovery of such a large amount takes a longer time period. By socialising the loss similar to how other impacted exchanges have done in the past, we are in a position to open up the platform sooner for everyone,” added Shetty.
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