CoinSwitch has announced a new initiative to help victims of the WazirX hack from 2024 recover some of their funds back.
CoinSwitch, a leading crypto exchange in India, has launched the “CoinSwitch Cares.” Announced in an X post, the program is a recovery fund to compensate for losses caused by the WazirX hack. The fund, totaling 600 crore rupees, equivalent to $69.9 million, is set to rebuild trust and offer a fresh start for the affected users.
When WazirX, one of India’s biggest crypto exchanges, suffered a major cyberattack last year, $235 million worth of crypto assets were siphoned. This led to frustration as users could not access their assets due to suspended withdrawals.
The breach, which has sparked controversy in the crypto world, was blamed on WazirX’s custody provider, Liminal. Liminal claimed that the exchange’s use of compromised devices led to the incident.
Announcing #CoinSwitchCares – a ₹600 Crore recovery fund for WazirX users.
CoinSwitch Cares is a ₹600 crore recovery program to help WazirX users who lost money due to the alleged cyber attack of July 2024. With this two-year program, we want to help affected users recoup… pic.twitter.com/Ql0TG25ztu
— CoinSwitch: India's Simplest Crypto App 🚀 (@CoinSwitch) January 7, 2025
Amid this, CoinSwitch saw an opportunity to step in and turn the crisis into a catalyst for recovery and growth. The exchange’s announcement to provide financial relief over the next two years reignited hope among the victims of the hack.
Users can claim compensation by providing proof of their losses, including WazirX loss statements and other requested evidence. The goal is to rebuild the community and restore trust in India’s crypto market. While CoinSwitch does not currently support direct crypto withdrawals, users can sell their crypto and withdraw in rupees. CoinSwitch offers bonuses such as sign-up rewards, revenue sharing, and referral incentives to encourage participation.
The initiative is also designed to attract new users, besides the focus to build a stronger community. CoinSwitch is funding the recovery effort from its reserves. This shows CoinSwitch’s long-term commitment to supporting users and growing in India’s volatile crypto market. Once WazirX resumes crypto withdrawals, CoinSwitch will have a clearer method for verifying claims and calculating rewards.
Since its launch in 2017, CoinSwitch has quickly grown to become one of the largest crypto exchanges in India, with over 20 million users. Backed by big investors like Andreessen Horowitz, Tiger Global, and Coinbase Ventures, CoinSwitch is in a strong financial position.
Several crypto platforms have taken similar steps to help users after security breaches. For example, Binance created a Secure Asset Fund for Users (SAFU) to cover $40 million in Bitcoin losses from the 2019 hacks. KuCoin used its reserves to reimburse users after a major hack in 2020, and BitMart did the same after a 2021 breach. Crypto.com also refunded users affected by a 2022 security issue while strengthening its firewalls
These initiatives build trust by ensuring users are insulated from related losses.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
