WazirX Draws Backlash Over ‘Socialized’ Recovery Plan, Asks Binance for Help

Crypto hack India Wazirx
Last updated:
Author
Author
Jai Pratap
About Author

Jai serves as the Asia Desk Editor for Cryptonews.com, where he leads a diverse team of international reporters. Jai has over five years of experience covering the web3 industry.

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Indian crypto exchange WazirX which lost over $230 million of users’ funds in a massive hack has proposed a controversial recovery plan that involves distributing the loss to all WazirX users.

The exchange’s strategy to distribute the impact equitably among all users has drawn backlash from the local crypto community.

On 27th July, WazirX proposed a poll giving two options to its users:

Option A: Users can trade and hold their crypto with priority for recovery but cannot withdraw it.
Option B: Users can trade and withdraw their crypto but will have lower priority for recovery. Users can switch to Option A before making trades or withdrawals.

The poll for WazirX users ends on August 3.

The distressed exchange today revealed in a post on X that they are currently reviewing all the inputs from the users to devise a plan that truly aligns with the community’s best interests.

“We aim to develop a plan that incorporates your collective voice and ensures a fair and effective outcome,” it added.

WazirX CEO Nischal Shetty clarified on X that this poll is not legally binding upon the users.

CEO and founder of CoinDCX, Sumit Gupta, criticised WazirX’s approach to the recovery, saying,

“WazirX is handling this entire situation isn’t community first and this IMO won’t go down well for them. This sadly is also hurting the other ecosystem participants.”

WazirX Reportedly Approached Binance for Help

As per a report from MoneyControl, WazirX has approached former partner Binance for help in bailing out customers affected by the $230-million cyberattack.

Binance controls around $80 million worth of WRX tokens as of the date of the hack. As of now, the hacked exchange can not use its own funds to pay back some part of the customer assets that were stolen, the report noted citing an anonymous source close to the matter.

Earlier, WazirX had a controversial fall out with Binance, ending the partnership between the exchanges.

More Articles

Ethereum News
Linea Updates Sybil List After Reviewing Appeals, Removes 3.5K False Positives
Veronika Rinecker
Veronika Rinecker
2025-02-18 09:03:47
Blockchain News
EU Watchdog ESMA Proposes Mandatory Knowledge Checks for Crypto Firms
Shalini Nagarajan
Shalini Nagarajan
2025-02-18 08:34:44
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors