CoinSwitch Steps In, Helps WazirX Victims Through $69.9M Fund

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CoinSwitch, a prominent cryptocurrency exchange in India, has introduced “CoinSwitch Cares”, a recovery program aimed at making amends for losses resulting from the WazirX hack. As stated in a recent announcement, this fund amounts to 600 crore rupees or approximately $69.9 million and is designed to restore trust and provide a new beginning for impacted users.

CoinSwitch Fund To Offer Fresh Start to WazirX Victims

Last year, a significant cyber attack struck WazirX, one of India’s leading cryptocurrency exchanges, resulting in the theft of approximately $235 million in digital assets. This incident caused distress among users because they were temporarily unable to withdraw their assets from the exchange.

As an analyst, I’ve been closely examining a recent event that has stirred up quite a buzz within the cryptocurrency sphere. This incident is being attributed to WazirX’s custodial service provider, Liminal. According to Liminal, the root cause of this occurrence was the utilization of devices that had been compromised by WazirX, which eventually led to the unfortunate event.

Announcing #CoinSwitchCares – a ₹600 Crore recovery fund for WazirX users.

The $600 billion Recovery Initiative by CoinSwitch Cares is designed to assist WazirX users who suffered financial losses as a result of the suspected cyber incident in July 2024. Over the course of two years, our goal is to provide support to affected users in regaining their lost funds.

— CoinSwitch: India’s Simplest Crypto App 🚀 (@CoinSwitch) January 7, 2025

In the midst of these challenging circumstances, CoinSwitch recognized an opening to intervene and transform the predicament into a springboard for recovery and expansion. The platform’s decision to offer monetary aid over the following two years sparked renewed optimism among those affected by the hack.

1) Users may seek reimbursement by submitting evidence of their losses, such as WazirX loss reports and any other required documentation. The intention is to strengthen the community and renew faith in India’s cryptocurrency market. At this time, CoinSwitch does not facilitate direct crypto withdrawals; however, users can sell their cryptocurrencies and withdraw funds in Indian Rupees instead. CoinSwitch provides incentives like sign-up bonuses, revenue sharing, and referral rewards to stimulate user engagement.

As a crypto investor, I can say that the initiative is not only geared towards drawing in new users but also strengthening our community here in India’s dynamic crypto market. CoinSwitch is demonstrating its long-term dedication to us by contributing funds from its reserves for the recovery effort. This action underscores their commitment to supporting us and fostering growth within this volatile market. Once WazirX resumes crypto withdrawals, it will provide CoinSwitch with a more transparent way to validate claims and calculate rewards, making the process clearer for everyone involved.

CoinSwitch’s Growing Influence in the Crypto World

Ever since its debut in 2017, CoinSwitch has experienced rapid growth, establishing itself as one of the prominent crypto exchanges in India with more than 20 million users. Notably, it enjoys substantial support from notable investors such as Andreessen Horowitz, Tiger Global, and Coinbase Ventures, ensuring its financial stability.

Multiple cryptocurrency platforms have responded in a similar manner to aid their users following security incidents. For instance, Binance established the Secure Asset Fund for Users (SAFU) to cover approximately $40 million worth of Bitcoin losses from the 2019 hacks. Similarly, KuCoin dipped into its reserves to compensate users after a significant hack in 2020, and BitMart followed suit following a breach in 2021. Additionally, Crypto.com refunded affected users after a 2022 security issue while reinforcing their firewalls.

These initiatives build trust by ensuring users are insulated from related losses.

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2025-01-07 23:00