The post CoinSwitch Announces ₹600 Crore Recovery Plan for WazirX Hack Victims appeared first on Coinpedia Fintech News
CoinSwitch, one of India’s largest cryptocurrency trading platforms, has announced a ₹600 crore recovery plan to help the nation’s struggling crypto users. This coalition intends to support over 4 million users who were adversely impacted by the WazirX hack that occurred in July 2024, in which the exchange lost $230 million.
Protection for the Sufferers of the Grand Theft
The WazirX 
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[email protected]
Centralised ExchangeCrypto trading and Information
security breach brought down about 45% of the entire crypto assets of the exchange and made the users unhappy. The most important element of the recovery plan developed by coinswitch
coinswitch
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Centralised Exchange
is to enable victims to reclaim their funds, receive some of the rewards, and get back into the cryptocurrency trading business.
The program, which is being run completely from scratch with the funds that CoinSwitch has on its balance, speaks about the sincere desire of the platform to create trust in the Indian crypto market.
The crypto exchange CoinSwitch which has recently garnered investments from Andreessen Horowitz, Tiger Global, and Coinbase Ventures has $300 million in its funding pool and has registered over 20 million users.
Staples of the Recovery Program
The ₹600-crore recovery plan, valid for 24 months, offers affected WazirX users:
- Upfront signup rewards: On this basis, qualified users will be able to earn up to 10 per cent of the deposited funds within 2 years.
- Referral benefits: This is good news to users as it means they can be able to reclaim up to 5% of the deposited amount, by providing information to other victims of the hack.
- Revenue redistribution: The trading revenues that will result from the program will be collective trade that will be recovered proportionally in different user losses.
Accordingly, the users of the platform must produce their WazirX account balance statements to validate their statements. CoinSwitch will keep track of such losses, compute them, and disburse them.
Co-founder of CoinSwitch Ashish Singhal stated that the company continues working to support the crypto community even in the moments it is under pressure.
He said,
Once WazirX starts allowing withdrawals from crypto, such claims can be analyzed, AUM ascertained and the subsequent rewards calculated.
The exchange platform that hosts 33% of Indian crypto consumers noted that 87% of its consumers contribute roughly 8% towards claims on any of the platforms it has. However, the exchange said that it incurred a loss of more than ₹1,900 crore because of the hack.
This relief, CoinSwitch expects users to regain within 6-8 months of WazirX unlocking funds. The initiative also takes place at the time of a new wave of cryptocurrencies with Bitcoin prices having reached their record level.
The recovery program is in itself extremely crucial for bringing back the investors’ confidence in the Indian crypto market. Beyond these, CoinSwitch is also actively helping the affected community and, in the process, ensuring that the platform is also supporting the sustainable development of the sector.
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