WazirX crypto hack | As CEO Nischal Shetty confirms FIR filed, rival CoinDCX announces ₹50 crore investor protection fund
The Hindu
After the WazirX wallet hack, CoinDCX announced a ₹50 crore Crypto Investors Protection Fund (CIPF).
As WazirX cryptocurrency exchange users anxiously wait for updates regarding the more than $230 million in assets stolen from a breached multi-signature wallet, rival crypto exchange CoinDCX announced a ₹50 crore Crypto Investors Protection Fund (CIPF).
The purpose of the fund is to compensate users in case of security breaches or other adversities, said the exchange in a press release. The news comes weeks after crypto exchange WazirX suffered a cyberattack that left customers reeling. The company’s CEO Nischal Shetty repeatedly asked users to be patient as the incident was being investigated, and confirmed this week that an FIR had been filed.
WazirX has stressed that its platform was not actually hacked.
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Shetty proposed a controversial plan to “socialise” the exchange’s losses, by locking a percentage of users’ own assets in order to carry out damage control while other options were being looked at. Withdrawals were also restricted as WazirX continues to investigate and take feedback from other stakeholders.
The decision was met with anger and frustration by many WazirX investors with locked-up funds who demanded more transparency from the exchange. They complained they had been left waiting for days without a confirmed action plan. Others questioned why WazirX did not offer to compensate users with its own profits.
CoinDCX’s announcement specifically referenced the issue of compensating users in case of hacks.
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