In simpler terms, Indian cryptocurrency platform CoinSwitch aims to attract users from the hacked competitor exchange WazirX by proposing a recovery program for victims of the WazirX hack.
On January 7, CoinSwitch publicly declared the initiation of a WazirX hack recovery fund worth 600 crore Indian rupees or approximately $69.9 million.
Under the banner of “CoinSwitch Cares,” our company’s relief fund is designed to aid users on WazirX who suffered financial losses as a result of the suspected cyber incident that occurred in July 2024.
In line with the plan, CoinSwitch intends to disburse the allocated funds to impacted users over a period of two years, with the goal of strengthening and invigorating the cryptocurrency sector in India.
WazirX loss statements are required
As per information from CoinSwitch Cares’ official records, users impacted by the WazirX’s alleged security incident can request their funds via the designated program.
To be eligible, users must submit evidence of their losses in the format of WazirX loss reports, as stated in the Frequently Asked Questions (FAQ) section by CoinSwitch.
In the FAQ section, it is stated that you may be required to present your WazirX loss records and any additional evidence that CoinSwitch might ask for, whenever they deem it necessary, in order to authenticate your assertion of experiencing a loss.
As a researcher delving into this project, I can share that under the given program, CoinSwitch provides three distinct forms of incentives: sign-on perks, revenue-sharing benefits, and referral rewards.
At CoinSwitch, it’s possible for users to cash out their cryptocurrency and receive Indian Rupees, but direct cryptocurrency withdrawals are not available at the moment.
CoinSwitch will fund the program from its cash reserves
As per a report from the local business news outlet, Business Standard, CoinSwitch plans to finance its two-year rehabilitation plan with its available funds on hand.
From our current position, we estimate we have approximately five years before running out of resources. The ongoing bull market has significantly increased the worth within our system. Directly from our own funds, we’re financing this program,” stated Ashish Singhal, a co-founder of CoinSwitch.
For the purpose of determining user losses and distributing funds, CoinSwitch intends to scrutinize the account balances of impacted WazirX users by examining their statement records.
When WazirX enables cryptocurrency withdrawals, it will simplify monitoring customer claims on our platform. This way, we can determine the total assets managed by our users and then calculate additional rewards accordingly,” Singhal explained.
CoinSwitch targets four million WazirX users
Established in 2017, CoinSwitch is a prominent cryptocurrency trading platform in India, boasting a user base of approximately 20 million individuals.
The firm has earned a reputation for successfully attracting substantial investments from prominent venture capital firms such as Andreessen Horowitz, Tiger Global, Coinbase Ventures, Peak XV Partners (previously known as Sequoia Capital India), among others, totaling hundreds of millions of dollars.
CoinSwitch’s support program aims to target about four million users of the WazirX platform.
The latest update arrives about a few months following the instance when WazirX temporarily halted withdrawals due to a suspected cyber attack that led to a loss of approximately $235 million, which occurred in July 2024.
The incident has sparked debate within the cryptocurrency community as Liminal, WazirX’s custodian service, has accused the exchange of utilizing potentially vulnerable or hacked equipment.
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2025-01-07 17:34