WazirX announces socialized loss strategy after $230M exploit

On its official website, Indian crypto exchange WazirX has announced a socialized loss strategy following a $230 million exploit, affecting 45% of user funds. Users will have two options for managing their assets, detailed on the WazirX app and website. The recovery plan includes access to 55% of user crypto assets for trading and/or withdrawal and conversion of the remaining 45% into USDT-equivalent tokens, which will then be locked. WazirX will create a balanced portfolio for the unlocked 55%, replacing affected tokens with unaffected ones. The exchange is working to recover stolen funds and exploring strategies like potential airdrops. Unlocked asset values will be based on average prices from CoinMarketCap and select global exchanges as of July 21, 2024, 8:30 PM IST. Operations will resume after implementing these arrangements.