WazirX REVEALS Community-Driven Recovery Plan After $230 Million Hack Loss

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After a devastating cyberattack that resulted in a $230 million loss, wazirx wazirx Centralised ExchangeCrypto trading and Information is turning to its community for recovery. Founder Nischal Shetty and the team have unveiled a comprehensive strategy to mitigate the impact, which involves distributing the losses across users’ crypto portfolios without affecting INR wallet balances.

Here’s a detailed rundown.

The 55/45 Model: A Quick Path to Recovery

WazirX will decide to use the 55/45 model to speed up the reopening of the platform. This strategy enables the users to have direct access to 55 percent of their digital currencies for trading or withdrawal while 45 percent will be surrendered in order to transform it into equivalent USDT tokens which will be locked. 

This method promises quicker access to funds compared to traditional recovery processes, which often involve lengthy delays.

The partial lock is designed to facilitate faster fund access while accommodating users who prefer to wait for their investments to potentially yield higher returns. This approach aims to strike a balance between immediate liquidity and long-term growth.

Committed to Transparency and Fairness

Shetty emphasized that distributing the losses across users is a transparent move that prevents the platform from concentrating instability in one area. This fair approach helps to ensure that the burden of recovery is shared equitably.

The fastest way to open the platform again for operations is to socialise the loss across the crypto portfolios.

INR wallet balance will not be impacted.

This partial lock is for crypto portfolio balance only.

This is phase 1 so that part of the crypto portfolio is accessible… https://t.co/CYCbwWCwl0

— Nischal (Shardeum)