Coindcx Urges Wazirx to Reconsider Passing 45% Losses to Customers

The CEO of Indian crypto exchange Coindcx has criticized Wazirx’s approach in response to a recent $230 million cyberattack. Urging Wazirx to take responsibility, he stressed: “Making customers directly absorb the 45% losses is utter nonsense.” 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 CEO Criticizes Wazirx’s 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 “to distribute the impact across all users equitably,” the exchange announced last week, adding: “Our 55/45 approach offers a faster, more flexible solution.” The exchange has also set up a poll for user participation regarding the reopening of the platform.

Gupta criticized Wazirx’s actions as not being community-first, which he believes will negatively impact them. “Hate to be saying this, but the way Wazirx is handling this entire situation isn’t community first and this IMO won’t go down well for them,” 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.

“I have not seen any such commitment around this from the company side, instead making customers directly absorb the 45% losses is utter nonsense,” he added. “The poll options are also framed in a manner to protect the business first and not the customers.” He concluded:

Hopefully they will reconsider their approach and do what’s 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 signers’ 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 platform’s security.

What do you think about Wazirx’s handling of the cyberattack and Coindcx CEO Sumit Gupta’s criticism? Let us know in the comments section below.

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