Controversial Survey by WazirX Sparks Backlash After $230 Million Hack
Clarifications by WazirX in Response to Criticism
The Indian crypto exchange WazirX is facing criticism after launching a survey to manage withdrawals following a $230 million hack, which accounted for 45% of user funds, earlier this month.
The survey, launched on July 27th, was described by the exchange as a “socialized loss strategy to distribute the impact equally among all users.” Customers were asked to vote between two options: access to 55% of their funds without withdrawals, prioritizing potential recoveries, or access to 55% of their funds with withdrawals, but with a secondary priority for potential recoveries.
It should be noted that even users whose tokens were not stolen in the hack would be affected by these proposals.
Amid criticism, WazirX and co-founder Nischal Shetty released statements, clarifying that the survey was “not legally binding” and was a “preliminary step to understand” customer opinions. They also announced the upcoming launch of a feedback form to collect more ideas.
Criticism from the Industry and Customers
This clarification did not appease critics, including the co-founders of three other Indian crypto exchanges and several customers. Arjun Vijay, co-founder of Giottus, stated that this initiative “was not in the best interest of the ecosystem” and that the survey was designed to force customers to choose option A.
Sumit Gupta, co-founder of CoinDCX, criticized WazirX’s handling of the situation, stating that it did not prioritize the community and would also harm other participants in the ecosystem.
Dr. Sathvik Vishwanath, co-founder of Unocoin, wrote on X that the crypto industry “is in trouble due to this event, and the way the problem is being handled only worsens the situation.”
Request for Assistance from Binance
WazirX has reportedly sought assistance from its former partner Binance to help the customers affected by the $230 million hack.
Binance has often stood out in the industry by assisting authorities in identifying the perpetrators of large-scale hacks and occasionally recovering stolen funds. The situation for WazirX appears complex, as the addresses involved in this hack are linked to the North Korean hacking group Lazarus Group.
