CoinDCX co-founder slams rival cryptocurrency exchange WazirX’s ’55/45 plan’: Hate to be saying this … – Times of India

CoinDCX, one of the biggest rivals of crypto currency platform, WazirX seems not in sync with the ’55/45 approach’ that the platform has announced to deal with the hacking attack that saw almost half of its reserves getting stolen. On July 19, WazirX experienced a significant security breach, resulting in the loss of over $230 million worth of cryptocurrency assets.
In response, WazirX announced on Saturday a controversial solution: distributing the loss among all customers. In a blog post last week, WazirX said that it is navigating the situation with transparency and fairness. “This approach aims to distribute the financial impact across all users equitably. Unlike traditional recovery methods that can take years, this strategy offers a faster, more flexible solution by allowing immediate access to a significant portion of assets while maintaining the possibility of further recovery for those who choose to wait” WazirX stated in the post.

CoinDCX co-founder slams WazirX’s approach

Sumit Gupta, cofounder of CoinDCX, expressed his concerns on X, formerly Twitter, urging WazirX to rethink its approach to managing the situation. “Hate to be saying this, but the way @WazirXIndia is handling this entire situation isn’t community first and this IMO won’t go down well for them. This sadly is also hurting the other ecosystem participants. The first contribution to losses should ALWAYS come from the Company (i.e. WazirX in this case) and the treasury and assets the company holds. I have not seen any such commitment around this from the company side, instead making customers directly absorb the 45% losses is utter nonsense. The poll options are also framed in a manner to protect the business first and not the customers. Hopefully they will reconsider their approach and do what’s right by the customers,” wrote Gupta. He warned further that “the incident could also negatively impact participation in the broader crypto ecosystem.”

WazirX’s controversial solution to security hack

WazirX’s socialized loss strategy has not gone well with users on the platform. The cryptocurrency exchange is facing a huge backlash from social media users on its approach to deal with the hacking. Several users wrote that the company failed with the security and now wants the customer to pay the price.