WazirX Unveils Recovery Plan After $230M Cyberattack, Implements 55/45 Strategy for Immediate Asset Access

In response to a recent cyberattack that stole approximately $230 million, Indian crypto exchange WazirX has unveiled a recovery plan for exchange users.

Crypto exchange WazirX has announced a recovery plan for exchange users following a recent cyberattack that stole around $230 million.

The plan aims to address the impact on user funds and maintain platform stability, the company said in a blog post.

Users will get immediate access to 55% of their assets, while the remaining 45% will be locked in Tether (USDT)-equivalent tokens, as part of a 55/45 strategy.

This approach contrasts with the prolonged uncertainty often seen in similar scenarios, according to the exchange. By socializing the loss, the firm aims to distribute the impact evenly across all users.

Moreover, WazirX said that the decision to provide immediate access to more than half of the assets is aimed at a faster and more flexible resolution.

The exchange is offering users two options to manage their remaining assets, with each option having specific benefits and conditions, which will be shared through the WazirX app or website.

Registered users will receive detailed instructions via email, guiding them on selecting their preferred option. The response deadline is Aug. 3, 2024, at 7:00 am India Standard Time.

While the poll is not legally binding, the results, ongoing investigations, and the platform’s liquidity will influence the final decision, the exchange noted. By participating, users agree to the terms and WazirX’s Terms of Use.

The firm will create a diversified portfolio with a basket of crypto assets for the unlocked 55% of users’ assets.

This strategy aims to mitigate the impact on users whose portfolios contain affected tokens. If the unlocked portion includes affected tokens, they will be replaced with unaffected crypto assets.

The value of the unlocked portfolio will be calculated based on average prices from CoinMarketCap and select global exchanges as of July 21, 2024, at 8:30 pm IST, the company announced.

Operations will resume shortly after users have completed the poll, the exchange added.

The WazirX breach resulted in a significant loss of around $235 million, making it the second-largest hack of a centralized exchange in recent times.

However, this incident is surpassed only by the DMM exploit on May 31, which saw a loss of $305 million.

The exchange aims to apply best practices from past incidents like the Mt. Gox and Bitfinex hacks for a fair resolution, it said.

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