CoinSwitch, a leading cryptocurrency investment platform, has introduced the CoinSwitch Cares Program, a ₹600 crore ($72 million) initiative aimed at supporting WazirX users who suffered losses during the July 2024 cyberattack on the WazirX platform. This program demonstrates CoinSwitch’s commitment to helping the crypto community in challenging times.
Compensation Without Hassles
CoinSwitch co-founder Ashish Singhal, in an interview with Business Standard, shared that the compensation under this program will be distributed directly into affected users’ accounts. Users can choose to receive their reimbursement in Indian Rupees or cryptocurrency, and there will be no lock-in period, ensuring swift access to funds.
Crypto Industry’s Current Landscape
The announcement comes at a time when the cryptocurrency market is experiencing a significant rebound. Prices of virtual digital assets (VDA), including Bitcoin, have been on the rise. Last month, Bitcoin reached an all-time high of $108,319, signaling renewed investor interest.
Targeting 4 Million WazirX Users
CoinSwitch plans to fund this initiative from its cash reserves, targeting approximately 4 million WazirX users. With a user base of over 20 million, CoinSwitch aims to compensate affected individuals by leveraging WazirX’s balance statements to calculate and distribute funds.
Background of the WazirX Cyberattack
The July 2024 cyberattack on WazirX led to a staggering loss of $230 million (₹1,909 crore). In response, CoinSwitch filed a legal case against WazirX, claiming that 2% of its total assets (₹12.4 crore) were frozen on the platform. To recover these funds, CoinSwitch initiated legal proceedings in August 2024.
Execution of the CoinSwitch Cares Program
The CoinSwitch Cares Program is set to disburse the ₹600 crore ($72 million) over the next two years. It aims to provide financial relief to affected users, offering a mix of rupees and crypto, depending on user preferences.
A Step Toward Community Trust
CoinSwitch’s proactive approach in addressing the aftermath of the WazirX cyberattack highlights the company’s dedication to safeguarding its community. By shouldering the financial burden of the affected users, CoinSwitch is setting a positive precedent in the crypto industry, ensuring trust and reliability remain at the forefront of its operations.
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