WazirX, a cryptocurrency exchange, has a big problem: it needs to win back the trust of its users and the crypto community after a major security breach that led to a $230 million hack.
Users strongly disagree with the company’s suggested way to deal with the financial losses caused by the hack, known as the “socialized losses” or 55/45 method.
The 55/45 method is controversial because users could only trade 55% of their assets on the Indian exchange. The last 45%, on the other hand, would be changed into the USDT stablecoin or another token and then locked on the site. This policy would apply to all users, even if the hack didn’t directly affect their cash.
A study that WazirX conducted from July 27 to August 3 to determine how people felt about the 55/45 plan showed that there was a lot of opposition. Users were unhappy with the plan and said it unfairly punished all users instead of helping those directly touched by the breach.
Crypto Users Demand Accountability And Transparency From WazirX Leadership
One person who went online as @aaakasei was unhappy and wanted harsh punishments given to Nischal Shetty, the CEO of WazirX. Another person, @TakaSacca19744, said the exchange wasn’t open or responsible and asked why it took so long to give important information and fix the problem.
The strong opposition to the 55/45 way shows how frustrated and uncertain WazirX users are becoming. Many people haven’t been able to get their money back, and the exchange’s handling of the hack and subsequent communication has made them feel unsafe and uncertain about the future of their investments.
When people said bad things about the poll, Nischal Shetty, co-founder of WazirX, said it was just for fun and not legally binding. TruthLabs said the $230 million hack happened because of weak security, but the exchange said its security measures were perfect.
Because of this event, the Indian Bharat Web3 Association (BWA) has told the crypto business to build robust security systems and better ways to keep users safe immediately.
WazirX is not believed as much as it used to be. The company needs to fix this problem and promise to make it safer so it doesn’t happen again.
