Some crypto users believe that CoinSwitch’s motivation for this initiative goes beyond providing relief to victims.
WazirX suffered a shocking hack in July 2024, wiping off over $200 million of customers’ funds. The hack caused a huge problem for users who trusted the exchange with their crypto. However, CoinSwitch has created a recovery fund to help the situation.
CoinSwitch announced that the fund, reportedly worth almost $70 million, will be distributed to affected users within 2 years. The recovery fund, tagged “CoinSwitch Cares,” is geared towards compensating affected users and strengthening the Indian crypto community.
To benefit from the program, users must provide proof of their losses, such as balance statements from their WazirX accounts. “Once WazirX opens crypto withdrawals, it will become easy to track the user claims that customers bring to our platform. We will know the assets under management (AUM) and calculate rewards on top of it,” CoinSwitch co-founder Ashish Singhal remarked.
Once verified, CoinSwitch will offer three types of rewards to eligible users: sign-up bonuses, revenue sharing, and referral bonuses. However, there are limitations—while users can sell their crypto and withdraw funds in rupees, direct crypto withdrawals are currently unavailable on CoinSwitch.
The recovery fund is being entirely financed by CoinSwitch’s cash reserves. Co-founder Ashish Singhal explained that the company is financially robust and can afford to fund the program directly. He emphasized that they have enough resources to sustain the program for two years. CoinSwitch plans to use WazirX users’ transaction data to calculate individual losses and determine appropriate compensation.
Some crypto users believe that CoinSwitch’s motivation for this initiative goes beyond providing relief to victims. These users claim that CoinSwitch sees an opportunity to grow its user base by targeting WazirX’s four million customers. Many believe that CoinSwitch could gain the trust of these users and encourage them to switch platforms.
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So @CoinSwitch has launched a help program to support victims of Wazirx scam. We no longer calling it hack. Good to see some exchange coming up to help. Though it will help them to get more users and shine a name. Business is a mutual benefit. coinswitch.co/pro/coinswitch…
