WazirX, India’s largest crypto exchange, announced plans to resume operations after a user poll on whether users can trade or withdraw part of their funds.
Withdrawals were paused following a $234 million hack of its Safe Multisig wallet on the Ethereum Network, affecting 45% of user funds.
WazirX plans a “socialized loss” strategy, giving users access to 55% of their crypto assets’ value while locking 45% in USDT-equivalent tokens.
The unlocked portfolio value will be based on average prices from CoinMarketCap and select exchanges as of July 21. The locked funds’ release depends on recovery efforts and possible airdrops.
The exchange defended this approach as fair and aimed at reducing uncertainty for users. Users have until August 3rd to vote in the poll, and operations will resume shortly after.
WazirX noted that in similar situations, users often face prolonged uncertainty and restricted access to their funds.
The socialized loss strategy, however, provides immediate access to a significant portion of assets while allowing the possibility of further recovery for those who opt to wait.
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