Ashish Singhal, CEO of Indian exchange Coinswitch announced a recovery program aimed at helping victims of the $230 million WazirX cyberattack.
The program, however, has drawn criticism from the crypto community, with many labeling it a user acquisition strategy rather than a genuine effort to help victims recover funds.
Singhal announced his new initiative on X explaining that the program’s objective is not only to assist users in recovering losses but also to promote the growth of India’s crypto ecosystem.
“Announcing CoinSwitch Cares — A Rs 600 cr crypto asset recovery program Today, we’re launching ‘CoinSwitch Cares,’ a Rs 600 crore recovery program to help WazirX users who lost money due to the alleged cyberattack of July 2024.
The program aims not only to allow users to recoup losses but also to ensure the growth of the Indian crypto community. Starting today, affected users can recover losses, earn rewards, and re-enter the market with confidence through this community-focused initiative.
Users can visit the CoinSwitch Cares portal (link in comments) to estimate recovery, deposit funds, and claim rewards. It’s time to turn setbacks into comebacks!
CoinSwitch Cares is more than a recovery program it’s our commitment to building a secure and thriving crypto ecosystem in India.” Singhal tweeted.
How the Recovery Program Works
The recovery program, branded as “CoinSwitch Cares,” encourages WazirX users to estimate their losses, create a CoinSwitch account, and transfer their funds once withdrawals are available. Various Rewards like Signup rewards, Revenue redistribution, and referral rewards are designed to incentivize these new Coinswitch users.
Backlash from the crypto community
The initiative has faced backlash on X, with users accusing CoinSwitch of exploiting the WazirX hack as a marketing opportunity.
Critics believe that users who lost huge funds to the WazirX hack will not be looking to transfer their funds to another centralized exchange.
One WazirX user raised concerns about the initiative’s long-term effectiveness, stating, “This program seems more like a marketing stunt than a genuine attempt to help victims of the hack.”
What to Know
- In July 2024, WazirX the biggest crypto exchange in India lost a whopping $230 million to hackers. This remains the biggest hack of 2024 and drew outrage amid the crypto community.
- Wazir X has tried various recovery methods including promising Online sleuths 10% of recovered loot and trying a social loss-sharing method that sought to share losses amongst all members of the platform.
- The Social loss-sharing method was criticized by the crypto community who spoke against customers bearing the cost of a hack instead of the company cutting down on their profits.
