The CEO of Indian crypto exchange Coindcx has criticized Wazirxâs approach in response to a recent $230 million cyberattack. Urging Wazirx to take responsibility, he stressed: âMaking customers directly absorb the 45% losses is utter nonsense.â Wazirx is working to recover and reopen its platform, providing updates and taking legal actions, while assuring users about the security of INR funds.
Coindcx Urges Wazirx to Reconsider Passing 45% Losses to Customers
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Coindcx CEO Criticizes Wazirxâs Cyberattack Response
Sumit Gupta, CEO of the Indian crypto exchange Coindcx, voiced his concerns on social media platform X on Monday regarding the current approach taken by crypto exchange Wazirx, which recently suffered a significant cyberattack resulting in over $230 million being stolen, which is about 45% of user funds. The exchange is currently working to recover stolen funds and reopen its platform for withdrawals and trading.
Wazirx is implementing a socialized loss strategy âto distribute the impact across all users equitably,â the exchange announced last week, adding: âOur 55/45 approach offers a faster, more flexible solution.â The exchange has also set up a poll for user participation regarding the reopening of the platform.
Gupta criticized Wazirxâs actions as not being community-first, which he believes will negatively impact them. âHate to be saying this, but the way Wazirx is handling this entire situation isnât community first and this IMO wonât go down well for them,â he began, adding:
This sadly is also hurting the other ecosystem participants. The first contribution to losses should ALWAYS come from the company (i.e. Wazirx in this case) and the treasury and assets the company holds.
âI have not seen any such commitment around this from the company side, instead making customers directly absorb the 45% losses is utter nonsense,â he added. âThe poll options are also framed in a manner to protect the business first and not the customers.â He concluded:
Hopefully they will reconsider their approach and do whatâs right by the customers.
Wazirx has provided daily updates on its recovery efforts, addressing user concerns about recovery options, asset valuation, and USDT conversion. The exchange claims that its signersâ machines show no evidence of compromise. Despite the breach, the platform asserts that INR funds remain secure. To recover stolen assets, Wazirx has launched a $23 million bounty program. Legal action is being pursued, and Wazirx continues to assure users of the platformâs security.
What do you think about Wazirxâs handling of the cyberattack and Coindcx CEO Sumit Guptaâs criticism? Let us know in the comments section below.
