CoinSwitch, a leading cryptocurrency trading platform in India, has unveiled an ambitious ₹600 crore recovery initiative aimed at assisting the nation’s distressed crypto users. This comprehensive plan is designed to aid over 4 million individuals who suffered losses due to the WazirX hack in July 2024, which resulted in a staggering $230 million loss for the exchange.
Protection for the Victims of the Massive Breach
The unfortunate security breach at WazirX led to a substantial 45% depletion of the exchange’s total crypto assets, leaving many users in dismay. To address this, CoinSwitch has crafted a recovery plan focused on allowing affected users to recoup their losses, earn rewards, and re-engage with cryptocurrency trading. This initiative, funded entirely by CoinSwitch’s financial reserves, underscores the platform’s earnest commitment to restoring confidence in the Indian crypto market.
CoinSwitch has attracted significant investment from notable firms including Andreessen Horowitz, Tiger Global, and Coinbase Ventures, with its funding pool now standing at $300 million. The platform has impressively registered over 20 million users, reflecting its growing influence in the crypto industry.
Key Components of the Recovery Plan
The ₹600-crore recovery plan, spanning a 24-month period, offers several benefits to affected WazirX users:
- Upfront Signup Rewards: Eligible users can earn up to 10% of their deposited funds within two years.
- Referral Benefits: Users can reclaim up to 5% of their deposited amount by sharing information with other hack victims.
- Revenue Redistribution: Trading revenues generated through the program will be proportionally distributed to users based on their losses.
To participate in the program, users must submit their WazirX account balance statements for verification. CoinSwitch will meticulously calculate and compensate these losses.
Ashish Singhal, Co-founder of CoinSwitch, emphasized the company’s ongoing commitment to supporting the crypto community, even during challenging times. He stated, “When WazirX resumes allowing crypto withdrawals, claims can be evaluated, assets under management (AUM) determined, and subsequent rewards calculated.”
Restoring Trust in the Indian Crypto Market
Hosting 33% of Indian crypto consumers, CoinSwitch noted that 87% of its users contribute approximately 8% towards claims across various platforms. Despite incurring a loss exceeding ₹1,900 crore due to the hack, CoinSwitch anticipates that users will recover their losses within six to eight months following the unlocking of funds by WazirX. This recovery initiative aligns with the rising wave of cryptocurrencies, marked by Bitcoin reaching unprecedented price levels.
This recovery program is pivotal not only for restoring investor confidence but also for ensuring the sustainable growth of the Indian crypto sector. CoinSwitch remains steadfast in its efforts to support the affected community, while simultaneously contributing to the industry’s long-term development.
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