Protection for the Victims of the Major Crypto Breach
CoinSwitch, one of India’s leading cryptocurrency exchange platforms, has launched an ambitious ₹600 crore recovery plan. This initiative aims to provide relief to over 4 million users affected by the July 2024 WazirX hack, which saw the exchange suffer a massive loss of $230 million. The breach significantly impacted 45% of WazirX’s crypto assets, leaving many users distressed and in dire need of assistance.
The cornerstone of CoinSwitch’s recovery plan is to empower victims by enabling them to reclaim their lost funds, earn rewards, and re-engage with cryptocurrency trading. This plan is entirely self-funded by CoinSwitch, reflecting the platform’s commitment to rebuilding trust within the Indian crypto community. With investments from prominent firms like Andreessen Horowitz, Tiger Global, and Coinbase Ventures, CoinSwitch boasts a robust funding pool of $300 million and a user base exceeding 20 million.
Key Elements of the Recovery Program
The ₹600-crore recovery initiative, valid for 24 months, offers the following benefits to affected WazirX users:
- Upfront Signup Rewards: Eligible users can earn up to 10% of their deposited funds over two years.
- Referral Benefits: Users can reclaim up to 5% of their deposited amount by referring other hack victims.
- Revenue Redistribution: The program redistributes trading revenues proportionately to cover user losses.
To participate, users must submit their WazirX account balance statements for verification. CoinSwitch will meticulously calculate and disburse compensations based on these verified losses.
Commitment to the Crypto Community
CoinSwitch’s Co-founder, Ashish Singhal, emphasized the company’s unwavering dedication to supporting the crypto community, even amidst challenging times. Singhal stated, “Once WazirX resumes crypto withdrawals, we will analyze claims, ascertain assets under management (AUM), and calculate subsequent rewards.”
The platform, which serves approximately 33% of Indian crypto users, disclosed that 87% of its consumers contribute significantly, yet it faced a substantial loss of over ₹1,900 crore due to the hack. CoinSwitch anticipates that affected users will regain their funds within 6-8 months following WazirX’s fund unlocking.
Revitalizing Confidence in the Indian Crypto Market
This recovery plan is pivotal in restoring investor confidence in the Indian cryptocurrency sector. CoinSwitch is not only addressing the immediate needs of the affected community but also fostering the sustainable growth of the industry. This initiative coincides with a resurgence in cryptocurrency interest, as Bitcoin prices soar to unprecedented levels.
