WazirX's controversial solution to security hack: $230 million loss to be distributed among all customers
cryptocurrency exchanges, recently faced a significant security breach, resulting in a loss of over $230 million. In response, WazirX announced on Saturday a controversial solution: distributing the loss among all customers.
Following the cyberattack, which resulted in the theft of approximately $230 million, equivalent to 45% of user funds, WazirX is implementing a «socialized loss» strategy.
«This approach aims to distribute the financial impact across all users equitably. Unlike traditional recovery methods that can take years, this strategy offers a faster, more flexible solution by allowing immediate access to a significant portion of assets while maintaining the possibility of further recovery for those who choose to wait» WazirX stated in a note.
What is a socialized loss strategy?
Distribution of funds:
Did you Know?
The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors.
View Details»55% of user crypto assets will be made available for trading and withdrawals, depending on the selected option. The remaining 45% will be converted to USDT-equivalent tokens and locked.
Balanced portfolio:
For the unlocked 55%,
