Remember the WazirX hack from two weeks ago? The crypto world is in an uproar as the firm’s plan to make users shoulder the burden of its $230 million attack backfires.
Recently, the cryptocurrency exchange has proposed a solution to address the losses — the “socialized losses” or 55/45 approach.
The 55/45 approach suggested that users could trade only 55% of their assets on the Indian exchange, while the remaining 45% would be converted into USDT stablecoin or other tokens, which would then be locked on the platform. This decision would apply to all users, regardless of whether the hack affected their funds.
A user poll for the 55/45 approach, conducted from July 27 to August 3, revealed significant backlash. Users expressed their frustration, feeling the plan unfairly impacted everyone instead of specifically addressing those who had suffered losses from the hack.
As social media erupted with anger, users demanded transparency and accountability from WazirX CEO Nischal Shetty. On X, users are criticizing WazirX for stalling and being unfair to users by delaying information and resolution of the issue.
The backlash against the 55/45 approach highlights the growing frustration and uncertainty among WazirX users, many of whom cannot withdraw their funds. The exchange’s handling of the hack and subsequent communication has left its entire user base feeling vulnerable and uncertain about the future of their investments.
However, WazirX co-founder Nischal Shetty has since underlined that the poll was merely a means to solicit community input, not a legally binding decision. The Indian cryptocurrency exchange has also refuted allegations by TruthLabs regarding security vulnerabilities that supposedly resulted in the $230 million hack, denying any lapses in their security measures.
In response to the hack, the Bharat Web3 Association (BWA) in India is now prioritizing the development of robust cybersecurity frameworks and enhanced consumer protection protocols within the crypto industry.
