On July 18, WazirX, India’s largest crypto exchange, suffered a cyber attack, losing over $230 million in digital assets. This breach affected 45% of user funds, shaking the platform’s trust with its 15 million users.
In response, WazirX proposed a “socialized loss strategy,” allowing users to access only 55% of their assets while locking 45% in Tether-equivalent tokens. This move has sparked outrage, with many users feeling betrayed.
Critics, including CoinDCX’s CEO, argue that WazirX should bear the full loss, not its users. The plan’s non-binding poll and withdrawal restrictions have intensified user distrust.
India’s high crypto taxes add to the frustration, as the government offers no safety net during crises. This situation highlights the urgent need for better regulatory support in India’s crypto landscape.
