The global digital assets market saw many ups, and slightly fewer lows in 2024. The $234 million WazirX hack was one of the major highlights of the last year which shocked the Indian crypto community. In the latest developments, an India-grown crypto exchange seems to be lending a helping hand to the affected users.
CoinSwitch unveiled a Rs 600 crore (approx. $70 million) recovery program for WazirX users. The exchange aims to help users recover losses and acquire customers from the embattled exchange. This comes in when the hacked exchange is planning new business initiatives alongside distributing funds to Creditors.
CoinSwitch Care launches
According to the announcement, CoinSwitch Care will disburse Rs 600 crore to WazirX users over 2 years. Affected users will receive funds in INR or crypto without a lock-in, allowing flexibility in withdrawals and trades. As WazirX is still unable to offer crypto withdrawals, the exchange plans to track claims once the exchange reopens its crypto withdrawal system. This is done in order to ensure fair distribution of funds based on user losses.
It mentioned that the CoinSwitch is covering this initiative from its own pockets. The recovery program targets around 4 million WazirX users. The Indian crypto exchange plans to distribute funds based on user balance statements and it will include trading revenue from the program as well.
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 give users an… pic.twitter.com/YdcQdU7x94
— Ashish Singhal (@ashish343) January 7, 2025
Eligible users can get up to 10% upfront rewards for sign-up. There is another 5% referral bonus for bringing other affected users into the fold. WazirX is still reeling from a security breach last July that resulted in $230 million in losses but will see users getting back their funds gradually.
WazirX turmoil continues
WazirX held its Third Committee of Creditors (COC) meeting on December 12 and 14, 2024. It happened in two identical sessions to accommodate the COC’s availability. The aim of the meeting was to provide the COC members with further details of the Scheme terms and to explain the Scheme of Arrangement filed with the Singapore High Court on December 06, 2024.
The distribution of funds lands with the WazirX plans of launching new business initiatives. It stated that its parent company, Zettai Pte Ltd, is committed to maximizing recoveries for Scheme Creditors. The First distribution of rebalanced Net Liquid Platform Assets will take place within 10 business days after the scheme is effective.
Another Indian crypto exchange had decided to step up amid WazirX turmoil. CoinDCX Co-founder, Neeraj Khandelwal, expressed openness to absorb WazirX’s 4.4M stranded users and pending cooperation from management. In a post, he stated “We want to. But it’s also dependent on WazirX. If they want to.” This comes after a Rs 2000 Cr hack in July and 5 months of frozen funds.
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