CoinSwitch Launches $70M Recovery Fund for WazirX Hack Victims
Indian cryptocurrency exchange CoinSwitch has announced a $70 million recovery fund to assist victims of the July 2024 WazirX hack, aiming to restore confidence in the Indian crypto ecosystem.
A Lifeline for WazirX Users
On January 7, CoinSwitch unveiled its recovery program, “CoinSwitch Cares,” pledging 600 crore Indian rupees ($69.9 million) to compensate users who lost funds due to the alleged cyberattack on WazirX. The program, funded directly by CoinSwitch’s reserves, aims to distribute recovery funds over the next two years.
Ashish Singhal, co-founder of CoinSwitch, emphasized the company’s commitment:
“We have about five years of runway from where we sit. The current bull run has helped us strengthen our position. We are funding this program directly from our pockets.”
Eligibility and Process
Affected users must provide proof of their losses through WazirX loss statements and any other documentation CoinSwitch deems necessary. The program offers three types of rewards:
- Sign-up Bonuses
- Revenue Sharing
- Referral Bonuses
While users can convert and withdraw funds in Indian rupees, CoinSwitch clarified that direct crypto withdrawals are currently unsupported.
To verify claims and calculate losses, CoinSwitch plans to screen affected WazirX users using their balance statements. Singhal added, “Once WazirX opens crypto withdrawals, it will become easy to track user claims and calculate rewards.”
Funding the Initiative
The program will be financed entirely from CoinSwitch’s cash reserves, underscoring the company’s strong financial position. Singhal noted the ongoing market rally has further solidified CoinSwitch’s ability to undertake this significant initiative.
Targeting Four Million WazirX Users
With over 20 million registered users, CoinSwitch is one of India’s largest crypto exchanges. The recovery initiative aims to attract four million WazirX users who were impacted by the July hack, which allegedly caused losses of $235 million.
WazirX has faced criticism following the breach, with custody provider Liminal blaming the exchange for using compromised devices, a claim that added controversy to the incident.
A Step Toward Rebuilding Trust
The recovery fund highlights CoinSwitch’s proactive approach to strengthen trust in India’s crypto ecosystem. By compensating victims and targeting new users, the exchange is positioning itself as a leader in the market while addressing the fallout from one of the country’s most significant crypto security breaches.
Looking Forward
As CoinSwitch expands its user base and supports affected investors, the initiative demonstrates how crypto firms can lead recovery efforts, fostering trust and growth in an evolving market.
This recovery fund marks a significant milestone for India’s crypto industry, aiming to turn a crisis into an opportunity for renewed confidence.
