WazirX Abandons Loss Plan, Files FIR Post $230M Hack
- WazirX filed an FIR at the PS Special Cell in New Delhi on August 5, 2024, after a major hack.
- The FIR was filed under section 66(B) of the IT Act and section 153A of the BNS.
- WazirX abandoned its initial loss distribution plan due to customer backlash.
WazirX Responds to Cyberattack with FIR, Drops Loss Distribution Plan
The Indian-based digital asset exchange WazirX has recently come under pressure from its customers after it suffered a major hack that saw it lose more than $230 million. Regarding the event, WazirX has claimed the filing of the First Information Report (FIR), which demonstrates the company’s readiness to solve the problem and punish the offenders. The FIR has been registered under section 66(B) of the IT Act and section 153A of the BNS which proves that the investigation is not casual.
WazirX Files FIR & Scraps Loss Distribution Plan Amid Backlash
WazirX has been quick to act after the infamous hack that saw its users lose a lot of money. The exchange stated on X (formerly known as Twitter) that an FIR was filed on August 5, 2024, at the PS Special Cell in Lodhi Colony, New Delhi. This came after a previous complaint was filed right after the cyberattack with the aim of getting WazirX’s multisig wallet.
The exchange has been cooperating with the Intelligence Fusion & Strategic Operations (IFSO) department of the Delhi Police in the case. WazirX has faith in the ongoing investigation and has affirmed to its users of its commitment to recovering the stolen funds. The company has been very open with its customers in informing them of the measures being taken to improve security and avoid such incidences in the future.
In light of the hack, WazirX initially proposed a loss distribution plan to mitigate the impact on its users. WazirX has abandoned its plan to socialize losses following backlash from customers and the crypto community. Instead, the exchange is seeking a $230 million cash injection and exploring partnerships with foreign and Indian exchanges.
The proposal to redistribute assets, which would have resulted in a 45% loss for all wallet holders, was met with strong opposition. Despite the hack, experts believe WazirX remains a valuable asset due to India's potential as a major crypto market. Partnerships with WazirX could offer foreign exchanges a significant entry point into this growing market. The decision underscores the challenges WazirX faces in balancing customer satisfaction with effective crisis management.
Conclusion
In response to a significant hack resulting in over $230 million in losses, WazirX has taken decisive action by filing an FIR and collaborating with the Delhi Police's IFSO unit. Despite initial plans to distribute losses among users, backlash led WazirX to seek a $230 million cash injection and explore partnerships instead. This incident highlights the challenges of crisis management and the potential of India's crypto market.
