Crypto Exchange To ‘Socialize’ $230 Million Security Breach Loss Among Customers
An anonymous reader shares a report: Indian cryptocurrency exchange WazirX announced on Saturday a controversial plan to “socialize” the $230 million loss from its recent security breach among all its customers, a move that has sent shockwaves through the local crypto community.
The Mumbai-based firm, which suspended all trading activities on its platform last week following the cyber attack that compromised nearly half of its reserves in India’s largest crypto heist, has outlined a strategy to resume operations within a week or so while implementing a “fair and transparent socialized loss strategy” to distribute the impact “equitably” among its user base.
WazirX will “rebalance” customer portfolios on its platform, returning only 55% of their holdings while locking the remaining 45% in USDT-equivalent tokens. This will also impact customers whose tokens were not directly affected by the breach, with the company stating that “users with 100% of their tokens in the ‘not stolen’ category will receive 55% of those tokens back.”
Read more of this story at Slashdot.
An anonymous reader shares a report: Indian cryptocurrency exchange WazirX announced on Saturday a controversial plan to “socialize” the $230 million loss from its recent security breach among all its customers, a move that has sent shockwaves through the local crypto community.
The Mumbai-based firm, which suspended all trading activities on its platform last week following the cyber attack that compromised nearly half of its reserves in India’s largest crypto heist, has outlined a strategy to resume operations within a week or so while implementing a “fair and transparent socialized loss strategy” to distribute the impact “equitably” among its user base.
WazirX will “rebalance” customer portfolios on its platform, returning only 55% of their holdings while locking the remaining 45% in USDT-equivalent tokens. This will also impact customers whose tokens were not directly affected by the breach, with the company stating that “users with 100% of their tokens in the ‘not stolen’ category will receive 55% of those tokens back.”
Read more of this story at Slashdot.