WazirX Faces Uphill Battle After Cold Wallet Hack
Two months ago, WazirX was a prominent cryptocurrency exchange in India, but its fortunes took a turn for the worse when its cold wallet was breached by an unknown attacker 1.5 months ago. The aftermath of this security breach has left WazirX struggling to stay afloat, with the platform now resorting to legal measures to protect itself from potential liabilities.
The exchange is currently seeking legal immunity in Singapore through a scheme of arrangement, a move that has sparked concerns among its user base. Many are worried about the implications of this legal maneuver, particularly in terms of how it may impact their financial interests.
Repayment Plan Sparks Controversy
According to reports from a Crypto X account representing WazirX customers, the exchange plans to repay users only 40-55% of their funds, starting six months after securing legal immunity. These repayments will be staggered in small increments of 5-10% over an extended period, a strategy that WazirX claims is necessary to prevent financial collapse.
However, critics argue that this repayment plan is designed to benefit WazirX’s leadership at the expense of its customers. By withholding full refunds and using user funds to sustain the platform and attract new users, WazirX risks alienating its existing customer base in favor of short-term gains.
Call for Binance Acquisition
Some voices within the crypto community have suggested that Binance, a major player in the industry, should fully acquire WazirX without any conditions. This acquisition, they argue, would ensure that all users receive 100% of their funds back, restoring trust and confidence in WazirX.
The proposal advocates for WazirX to accept personal losses and engage in negotiations with Binance for a complete acquisition. By prioritizing the interests of its users and demonstrating a commitment to transparency and accountability, WazirX could potentially pave the way for future opportunities, even if it means forgoing immediate financial gains.
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