Indian crypto exchange WazirX has introduced a “socialized loss strategy” to address a recent hack that cost $235 million, affecting 45% of user funds. The plan allows users to access 55% of their assets immediately, with the remaining 45% locked in Tether (USDT)-equivalent tokens.
Users can choose between two recovery options: Option A offers trading access with priority in potential recovery, while Option B allows staggered withdrawals with lower recovery priority. As of now, 62% of users prefer Option B.
WazirX co-founder Nischal Shetty emphasized the need for community support to recover and grow post-incident. However, the strategy has faced criticism, with some users calling it a scam and questioning the decision to convert locked assets to USDT.
In 2023, crypto hacks resulted in over $1 billion in losses.
