Key Takeaways:
- WazirX faces backlash after a $230 million hack and proposes a “socialized losses” solution.
- Users criticize the plan, which converts 45% of assets to Tether (USDT) and locks them, limiting trading to 55%.
- The Bharat Web3 Association is now emphasizing enhanced cybersecurity and consumer protection.
WazirX is grappling with a crisis following a $230 million hack, leading to significant user backlash against its proposed solution.
The “socialized losses” or 55/45 approach, which limits users to trading 55% of their assets while converting the remaining 45% into Tether (USDT) or other tokens and locking them on the platform, has been heavily criticized.
It’s been 15 days, wazirx team still didn’t publish a report on following details :
— Aditya Singh (@CryptooAdy) August 1, 2024
1) Breakdown of Stolen Crypto with Amount.
2) Breakdown of Remaining Crypto with Amount.
3) Disclose Wallet addresses. (Live POR was disabled on Coingabbar)
3) Disclose INR holding (Just Like POR…
A user poll revealed overwhelming disapproval, with many feeling the plan unfairly impacts all users, not just those affected by the hack.
Users have expressed their frustration on social media, questioning the exchange’s transparency and accountability.
What's stopping Wazirx from enabling withdrawal ?
— Engineer Xplains (@engineer_inside) August 1, 2024
Please Let people get hands on what's left , meanwhile you can proceed with recovery process/ feedback form.
Atleast users can use those tokens to plan and execute in bull run , which will help them in booking some profit.
WazirX CEO Nischal Shetty clarified that the poll was for community input and not a binding decision.
The incident has spurred the Bharat Web3 Association to focus on improving cybersecurity and consumer protection in the crypto industry.
About The Author
Fleming Airunugba, a seasoned Web3 and crypto content expert, leverages his deep understanding of blockchain technology to bring the latest and most impactful news to the crypto community.
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