Crypto exchange WazirX faced significant backlash over its proposed “55/45” plan to distribute losses from a recent hack. The plan, which intended to spread $230 million in losses among users, was met with strong criticism from the community.
On July 27, WazirX initiated a poll to gauge user sentiment about the plan. The proposal suggested users could only access 55% of their assets, with the remaining 45% converted into stablecoin reserves. However, the uproar from customers led the platform to abandon the plan.
WazirX Poll Non-Binding
Co-founder Nischal Shetty clarified that the poll was non-binding and meant to gather feedback. Despite this, the community remained dissatisfied. Shetty assured users that the company is committed to transparency and will continue to refine its approach based on user suggestions.
Many users voiced concerns over the platform’s reimbursement process following the hack. Some accused the exchange of selectively answering questions and avoiding critical issues.
Crypto security analysts, including TruthLabs’ @BoringSleuth, provided insights into the hack. They suggested that a security vulnerability affecting multiple layer 2 blockchains, including Blast, Optimism, Mantle, and Coinbase’s Base, could have played a role. TruthLabs indicated that WazirX’s deployer address had suspicious transactions linked to laundering stolen funds.
WazirX denied allegations of security lapses, maintaining that it employs multiple key holders. TruthLabs also hinted at ongoing connections between WazirX and Binance, despite claims of severed ties. In 2019, Binance announced it acquired crypto exchange but later clarified it only purchased certain assets and intellectual property.
The situation highlights the critical impact of major crypto exchanges on the broader market, emphasizing the need for robust security and transparent communication with users.
