WazirX, an Indian cryptocurrency exchange, has revealed a strategy to lessen the impact of a recent attack that cost the company almost $235 million.
The exchange introduced a “socialized loss strategy” in response to the hack, which compromised 45% of user cash, in an effort to preserve platform stability and provide what it says a more equitable resolution for its consumers.
According to a blog post published by WazirX on July 27, the company intends to use a 55/45 strategy, in which users would have instant access to 55% of their assets while the remaining 45% will be held in Tether Tether USDT 0.45%.
Tokens equivalent to ethers.
According to the exchange, its approach attempts to equitably split losses among all users, avoiding undue effects on any particular group.
According to correspondence that WazirX sent to affected users — a copy of which was shared with crypto.news — the exchange presented a poll with two options to recover stolen funds. “Option A” lets users access 55% of their funds “for trading and deposits,” without withdrawal rights, but gives them priority in potential recovery proceeds. “Option B” lets users withdraw 55% of their assets “in a staggered manner,” albeit with lower priority in the recovery queue. In both cases, WazirX states that the remaining 45% of user assets will remain locked on the exchange as “USDT-equivalent tokens,” which would only be returned to users if the firm succeeds in recovering the stolen funds.
Details on the:
https://crypto.news/wazirx-implements-socialized-loss-strategy-following-235m-hack/
