WazirX has decided not to go ahead with its plan to share the losses from the recent $230 million hack among its users. The exchange had proposed a 55/45 approach, but this idea faced strong opposition from the crypto community.
After a recent poll showed little support for the plan, WazirX scrapped it. Meanwhile, users of the platform, who still cannot withdraw their funds, are left in a state of uncertainty.
WazirX Scraps Controversial Loss Sharing Plan
The latest update on the WazirX hack reveals a significant setback for the platform’s large user base. Following a poll from July 27 to August 3, the proposed 55/45 approach faced overwhelming backlash.
The 55/45 plan aimed to allow users to trade only 55% of their assets on the exchange, while the remaining 45% would be converted into USDT stablecoin or other tokens and locked on the platform. This proposal was intended for all users, regardless of whether their funds had been stolen. The plan’s unclear and controversial nature led to strong opposition from the crypto community.
In response to the feedback, a source close to the situation stated that the plan was not finalized. To move forward, WazirX needed to reconsider its approach and seek further community input. As a result of the backlash, the exchange decided to pause the implementation of the plan, according to a report by MoneyControl.
WazirX Co-Founder Clarifies Poll’s Purpose Amidst Security and User Issues
Nischal Shetty, co-founder of WazirX, has recently clarified that the poll regarding the 55/45 approach was not legally binding. Instead, it was intended to gather community feedback on the proposal. The Indian cryptocurrency exchange also refuted accusations by TruthLabs, which claimed that security lapses led to the massive $230 million hack.
Currently, 45% of WazirX users are stranded due to the stolen funds, while the rest are facing issues with their assets being frozen on the platform. The situation has left many users in a state of uncertainty.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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