WazirX Draws Backlash Over ‘Socialized’ Recovery Plan, Asks Binance for Help
Indian crypto exchange WazirX which lost over $230 million of users’ funds in a massive hack has proposed a controversial recovery plan that involves distributing the loss to all WazirX users.
The exchange’s strategy to distribute the impact equitably among all users has drawn backlash from the local crypto community.
On 27th July, WazirX proposed a poll giving two options to its users:
Option A: Users can trade and hold their crypto with priority for recovery but cannot withdraw it.
Option B: Users can trade and withdraw their crypto but will have lower priority for recovery. Users can switch to Option A before making trades or withdrawals.
The poll for WazirX users ends on August 3.
The distressed exchange today revealed in a post on X that they are currently reviewing all the inputs from the users to devise a plan that truly aligns with the community’s best interests.
“We aim to develop a plan that incorporates your collective voice and ensures a fair and effective outcome,” it added.
WazirX CEO Nischal Shetty clarified on X that this poll is not legally binding upon the users.
1. This poll is a preliminary step to understand your opinions.
2. This poll is not legally binding upon the users or WazirX
3. We will soon launch feedback form to collect more ideas
4. We are now looking into next steps based on all the feedback received
This is a major… https://t.co/tcdDjWzIYI
— Nischal (Shardeum)
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