WazirX Launch Transparent Loss Strategy Post $230M Hack

As part of its post-hack measures, the Indian cryptocurrency exchange WazirX has introduced a fair and transparent socialized loss strategy for user fund recovery. This signifies a move to minimize its user base disruption while preserving the stability of the ecosystem. 

The WazirX 55/45 Loss Strategy 

Almost two weeks ago, the Indian trading giant suffered a hack that left it with a loss of more than $230 million in crypto. Precisely, $100 million worth of Shiba Inu (SHIB) tokens, $52 million in Ethereum (ETH), $11 million in Polygon’s MATIC, and $6 million in Pepe Coin (PEPE) left the platform.

Unfortunately, the siphoned funds represented 45% of the entire users’ funds on WazirX. The firm employed several efforts to curtail the situation at the time, including temporarily disabling INR and crypto withdrawals. 

This latest loss strategy is a 55/45 approach where users can gain immediate access to 55% of their assets. The other 45% is locked in Tether USDT-equivalent tokens.

Markedly, this is a profound way to evenly distribute the impact of the hack across all users. It prevents any single group from bearing a disproportionate percentage of the burden.

Mt.Gox Repays Creditors After 10 Years

This is a clear distinction from the strategy usually adopted by other crypto exchanges that fall victim to such hacks. An example is Mt.Gox which lost huge funds to hackers in 2014. The affected creditors of the defunct exchange have had to wait for many years to get their funds back. 

After constantly promising to kick off a repayment plan, Mt.Gox finally commenced the process at the beginning of this month. A few creditors on Reddit confirmed that they received their Bitcoin in their Bitbank accounts. According to these creditors, the amount paid to them matches what the rehabilitation committee hinted at. 

Some funds were allocated to Kraken and Bitstamp for distribution to Mt.Gox creditors. Kraken began the distribution to the creditors while Bitstamp is still facing some strains doing so.

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