In the latest update on the WazirX hack after the $230 million theft, the exchange has decided to drop its plan to share the losses with its users. This plan, known as the 55/45 approach, faced strong criticism from the crypto community. After a poll at the end of last month, it became clear that this approach would not be popular. Meanwhile, the platform’s large number of users, who can’t withdraw their funds, are still worried. This update is a setback for WazirX’s many users. The poll for the 55/45 approach, which started on July 27, ended on August 3, with a lot of negative feedback against the proposal.
The 55/45 plan aimed to let customers trade only 55% of their assets on the Indian exchange, while the remaining 45% would be converted into USDT stablecoin or other tokens and locked on the platform. This decision applied to all users, even those whose funds were not stolen. The unclear and ineffective reasoning behind this plan led to significant backlash against the crypto exchange.
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Impact of Hack Leaves 45% of Users Affected
In the meantime, a source familiar with the situation said, “The plan wasn’t final. To restart operations, the exchange sought the community’s feedback. After the backlash, WazirX decided to slow down on it,” according to a report by MoneyControl.
Meanwhile, Nischal Shetty, the co-founder of WazirX, clarified that the poll was not legally binding but was meant to gather community feedback. Additionally, the Indian cryptocurrency exchange recently denied accusations by TruthLabs of security lapses that allegedly led to the $230 million hack. Notably, 45% of users on the platform are currently affected by the stolen funds, while the rest have their assets frozen on the WazirX exchange.
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