WazirX to ‘socialize’ $230 million cyberattack loss; offers bounty for recovery

Cryptocurrency exchange WazirX will “socialize” the $230 million loss from its recent security breach among all its customers, the company said, affecting all of its users whether their portfolio included the stolen assets or not.

“55% of user crypto assets will be made available for trading and/or withdrawals (depending upon the option that you select), while the remaining 45% will be converted to USDT-equivalent tokens and locked,” WazirX said.

This comes after the recent cyberattack, which resulted in the theft of about $230 million—equivalent to 45% of WazirX’s user funds. 

For both options, WazirX will create a balanced portfolio for the unlocked portion (55%) using a basket of crypto assets derived from available crypto assets on the platform. 

“If 55% of your unlocked portfolio includes affected tokens, we will balance it by replacing the affected portion with a basket of unaffected crypto assets available on the platform,” the crypto exchange platform said. 

WazirX, one of India’s leading crypto exchanges, allows members to buy, sell, and trade cryptocurrencies such as Bitcoin, Ethereum, Ripple, and many more.

While “socializing” the losses, WazirX said it was committed to continuing efforts to recover the stolen funds. 

“We will also explore options, such as airdrops and any other emerging ideas, as we continue on our path to recovery,” it said. 

The platform has also launched two bounty initiatives to gather help in recovering the funds.

As part of the track and freeze bounty, WazirX is offering up to $10,000 worth of USDT to identify, track, and provide actionable intelligence leading to the freezing of the stolen funds.

It is also offering 10% of the recovered amount (up to $23 million) as a white hat incentive. 

“This reward will be disbursed only after and subject to the successful receipt of the stolen amount by WazirX. The said rewards shall be payable in USDT or in the form of recovered funds at the sole discretion of WazirX,” the exchange said.