In a significant shift, WazirX has abandoned its proposed 55/45 approach for handling recent $234 million (INR 2000 crore) hack, following a sharp backlash from its user community.
The plan, which surfaced after a massive security breach involving $234 million, suggested that users could only trade 55% of their assets, while the remaining 45% would be converted into tokens and locked on the platform. This approach met with immediate disapproval, leading to its retraction as of August 3.
A pivotal poll conducted among users concluded on August 3, marking a decisive end to the controversial strategy. Initially, the plan was floated as a possible method to resume operations while addressing the financial discrepancies caused by the hack.
However, according to MoneyControl, insiders clarified, “The plan wasn’t final. So, to restart operations, the exchange had to chart a forward path and reach out for the community’s feedback.” This response underscores the exchange’s recalibration based on user input.
Complicating the exchange’s difficulties even further, WazirX has been accused by TruthLabs of security flaws, which the platform firmly refutes.
Co-founder of WazirX Nischal Shetty underlined that the poll described here was exploratory and not legally binding, meant only to gauge public opinion. Reacting to the hack, the exchange has been strengthening its defenses against the next breaches by working with CERT-In and the Financial Intelligence Unit (FIU).
The decision to discard the 55/45 loss-sharing proposal reflects WazirX’s commitment to transparency and user engagement. As the platform continues to navigate the aftermath of the hack, its focus is on strengthening security protocols and restoring user confidence, pivotal for its path forward in the volatile cryptocurrency market.
Also Read: WazirX Denies Allegation of Nischal Shetty Involved in HACK
