In the wake of the $230 million hack, WazirX’s proposed solution to address the losses has ignited significant backlash within the crypto community. The Indian cryptocurrency exchange suggested a “socialized losses” plan, also known as the 55/45 approach, which has been met with overwhelming disapproval from users.
The controversial plan proposed that users would only be able to trade 55% of their assets on the platform, while the remaining 45% would be converted into Tether or other tokens and locked on the exchange. This decision would affect all users, regardless of whether their funds were directly impacted by the hack.
A poll conducted among WazirX users from July 27 to August 3 revealed strong opposition to the plan. Many users voiced their frustration, arguing that it unfairly penalized everyone instead of specifically addressing those who suffered losses. One user, aka$h, expressed their displeasure on social media, suggesting drastic measures for WazirX’s CEO, Nischal Shetty: “My suggestion to Nischal Shetty: dude, just file bankruptcy, delete Twitter, and launch memecoins.”
Another user, TakaSacca19744, questioned the exchange’s transparency and accountability, criticizing the delay in providing information and resolving the issue. The backlash highlights the growing frustration and uncertainty among WazirX users, many of whom are unable to withdraw their funds.
In response, Shetty clarified that the poll was intended to gather community input and was not a legally binding decision. Additionally, WazirX has denied allegations by TruthLabs regarding security vulnerabilities that led to the hack.
The incident has prompted the Bharat Web3 Association in India to focus on developing robust cybersecurity frameworks and enhanced consumer protection protocols within the crypto industry. As the situation unfolds, WazirX faces increasing pressure to improve its security measures and regain user trust.
Contact us ontelegramfor media partnerships and for ourNFTwhitelist.