Learning from past incidents like the Mt. Gox and Bitfinex hacks, WazirX aims to implement best practices for a fair and efficient resolution.
In response to the recent cyberattack that resulted in the theft of approximately $230 million, Indian crypto exchange WazirX has announced a fair and transparent socialized loss strategy to recover user funds.
The hack, which impacted 45% of user funds, has prompted WazirX to adopt an equitable approach to minimize disruption for its users and maintain the platform’s stability.
Approach to Loss Distribution
In a blog post, WazirX stated it has opted for a 55/45 approach. This method allows users immediate access to 55% of their assets while locking the remaining 45% in Tether (USDT)-equivalent tokens.
This approach contrasts sharply with the prolonged uncertainty often experienced in similar scenarios. By socializing the loss, WazirX aims to distribute the impact evenly across all users, preventing any single group from bearing a disproportionate burden. This method is expected to facilitate a faster and more flexible resolution compared to traditional methods.
WazirX is offering its users two distinct options for managing their remaining assets. Each option has specific benefits and conditions and will be shared with users through the WazirX app or website.
According to the exchange, registered users will receive detailed instructions via email, guiding them through the process of selecting their preferred option. The deadline for response is August 3, 2024, at 7:00 am India Standard Time.
Asset Management Strategy
While the poll is not legally binding, the results, ongoing investigations, and the platform’s liquidity will influence the final decision. By participating in the poll, users acknowledge that they have read and unconditionally agree to the terms, remaining bound by WazirX’s Terms of Use.
Summary Review: WazirX’s approach reflects a commitment to transparency and fairness, aiming to provide a balanced solution for all affected users while ensuring the platform’s long-term stability.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
