Crypto exchange WazirX faced backlash over its proposed “55/45” plan to socialize losses from a recent hack. On July 27, WazirX launched a poll to gauge public sentiment on distributing $230 million in losses among users.
Due to customer uproar, the platform abandoned the plan. Initially, the proposal aimed to convert 45% of user assets into stablecoin reserves. Co-founder Nischal Shetty confirmed the attack’s severity and emphasized the need for user feedback.
Users expressed concerns over transparency and delays in reimbursement. Security firm TruthLabs linked the hack to vulnerabilities in multi-signature contracts, similar to those used by WazirX. The exchange denied security lapses and maintained multiple key holders.
There are speculations about lingering connections between WazirX and Binance, despite claims of severed ties. The incident highlights the critical need for robust security measures in the crypto industry and stresses the systemic impact of major exchanges on the market.
