WazirX Faces Criticism for Hack Recovery Strategy
WazirX lost a huge $230 million due to a massive hack not long ago, and it happens to be an Indian cryptocurrency exchange. To the outrage of the local cryptocurrency community, the Australian Securities Exchange came up with a plan whereby the users in all the sectors of the business were to assume the company’s loss while the rest of the sectors were to take care of the rebalancing through their respective operational earnings.
Proposed Poll Draws Mixed Reactions
On July 27th, WazirX asked their users to vote for one of the two recovery options they can choose from. The poll would last from that day until the 3rd of August. WazirX CEO emphasized that the trial is not a legal agreement and it is only a primary procedure to get the users’ aspirations.
CEO Nischal Shetty’s Clarification
WazirX CEO Nischal Shetty addressed the concerns on X (formerly Twitter), explaining:
- The poll’s objective is to get the users’ opinions;
- It is not legally binding;
- A feedback form will be released to collect more suggestions;
- The following strategies correspond to the user feedback.
“This is a significant security breach, and we are working on the resolution which needs more time in with the support of you. Your guidance and feedback will be the key in taking us through the process,” said Shetty. He also promised the community that there will be no hitches in the course of this sidetrack.
Criticism from the Crypto Community
Sumit Gupta, the CEO, and the founder of CoinDCX criticized WazirX’s approach by saying, “WazirX’s treatment of this situation is not community first which is not a good thing for the company and others alike, and this will result in the community’s backlash. It’s also hurting other players in the ecosystem.”
Gupta emphasized that the company should subsidize the damage from its own treasury and assets before anything else. He stressed that a scheme which manages to make the customers directly absorb the losses is unacceptable and added that WazirX “may” think it over if this will not be the case.
WazirX Seeks Binance’s Assistance
According to the report of MoneyControl, WazirX is in the consultation process with Binance, its former partner, and it is the cryptocurrency exchange’s firm hope of assisting the clients to recover their lost money. If you know the fact that Binance owns about $80 million of WRX tokens, which help them to buy the losses.
WazirX had a controversial falling out with Binance, which led to the termination of their partnership, but now they are looking for aid in order to get past the aftermath of the big cyberattack collectively.
Conclusion
WazirX attracted a lot of criticism from the people from the cryptocurrency community for its recovery plan after the $230 million hack. The question remains unanswered as the exchange is looking for help from Binance whether this effort will bear any fruit. Feedback on the part of the users and the measures that will be taken by WazirX in the wake of the situation will be integral in determining the future of the exchange and the relationship between it and its community.
