{"id":558578,"date":"2024-07-30T15:10:30","date_gmt":"2024-07-30T15:10:30","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=558578"},"modified":"2024-07-30T15:10:30","modified_gmt":"2024-07-30T15:10:30","slug":"wazirx-faces-community-uproar-over-socialized-loss-strategy-after-230m-hack","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/wazirx-faces-community-uproar-over-socialized-loss-strategy-after-230m-hack","title":{"rendered":"WazirX Faces Community Uproar Over “Socialized Loss” Strategy After $230M Hack"},"content":{"rendered":"

Embattled Indian cryptocurrency exchange WazirX is facing a backlash after proposing a “socialized loss strategy” following a hack that caused $230 million in losses. <\/span><\/p>\n

The criticism erupted on July 27, when the exchange tabled a poll dubbed “<\/span>Withdrawal Management Programme: Opinion Poll<\/span><\/a>” with two options. <\/span><\/p>\n

The first allows users to access 55% of their funds for trading without the ability to withdraw, but they receive priority during the recovery process. <\/span><\/p>\n

The second option is for users to access 55% of their funds, with the ability to trade and withdraw, but they will receive secondary priority during the recovery process. <\/span><\/p>\n

45% of the remaining funds will be converted to USDT before being locked. <\/span><\/p>\n

WazirX Faces Community Backlash <\/span><\/h2>\n

The poll attracted severe criticism from the exchange’s users, with one saying that users should not be punished over the company’s lack of robust security controls. <\/span><\/p>\n

“It was your responsibility to keep our funds safe,” said @MilanAr97154294 on X. “Since its your mistake u need to pay back our hard earned money. Raise funds, sell your properties give our money back to us.”<\/p>\n

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It was your responsibility to keep our funds safe since its your mistake u need to pay back our hard earned money. Raise funds, sell your properties give our money back to us.<\/p>\n

— Seeking Connection Summer of Shibarium (@MilanAr97154294) July 27, 2024<\/a><\/p><\/blockquote>\n