WazirX Hack: Making customers pay 45% losses is utter nonsense, says Co-Founder of CoinDCX

economictimes.indiatimes.com:

WazirX’s recent security breach, which saw the theft of approximately $230 million, the exchange’s decision to distribute the loss among all users has sparked intense criticism. Sumit Gupta, Co-Founder of CoinDCX, has condemned the move, labeling it as “utter nonsense.”

Sumit Gupta voiced his criticism on X (formerly known as Twitter), stating, «The first contribution to losses should ALWAYS come from the Company (i.e. WazirX in this case) and the treasury and assets the company holds. I have not seen any such commitment around this from the company side, instead making customers directly absorb the 45% losses is utter nonsense. The poll options are also framed in a manner to protect the business first and not the customers.»

WazirX’s decision to implement a «socialized loss» strategy comes after the exchange experienced a significant cyberattack that compromised nearly half of its user funds. According to a note from WazirX, this approach aims to distribute the financial impact across all users, allowing them to access a portion of their assets immediately while retaining the potential for further recovery. The exchange argues that this method provides a quicker resolution compared to traditional recovery processes.

However, Gupta’s