WazirX users are in line for relief after crypto exchange CoinSwitch announced a $70 million recovery program. While 2024 saw its fair share of ups and downs, WazirX was part of the group that took some hits during the year. The Indian crypto exchange suffered a $234 million hack, sending shock down the spines of its users. However, Indian-based fellow exchange CoinSwitch has announced plans to help the affected users.
In its recent statement, CoinSwitch announced that it will kickstart a Rs 600 crore recovery program for the affected users. Aside from helping users recover bits from their losses, the exchange also seeks to acquire some of them. The initiative is coming when the embattled exchange is looking into new ventures as it prepares to repay creditors.
CoinSwitch Care launches recovery program
According to the official announcement, the exchange, through its CoinSwitch Cares program, will distribute the funds to affected users over two years. The users will choose to receive their funds in crypto or fiat currency, with the flexibility to withdraw or trade. While WazirX is yet to sanction withdrawals, the exchange says it will begin to track claims when withdrawals go live. This ensures that the funds are distributed fairly among users.
The announcement also highlighted that CoinSwitch is responsible for the funds disbursed in the program. The program is aiming to help about four million users on the platform. The exchange will distribute funds based on the user’s balance, including revenue from several rewards programs.
Eligible users will be able to receive a 10% incentive in rewards at sign-up. The exchange is also offering 5% in rewards for referring other affected users to the program. While WazirX is still visibly shaken from the $230 million loss in July 2024, its users are getting their funds through this program.
WazirX continues to wade through its issues
WazirX held its third Committee of Creditors meeting on December 12 and 14. The identical session was to furnish members with detailed information on the Scheme of Agreement as filed at the Singapore High Court on December 6, 2024.
The distribution of funds rests on WazirX’s success in making headway in landing its new business initiative. The exchange highlighted that its parent firm Zettai Pte Ltd, is still looking for ways to increase rewards for Scheme Creditors. The first distribution of rebalanced Net Liquid Platforms Asset will be held ten days after the scheme goes live.
Another Indian crypto exchange CoinDCX, had initially announced plans to step up amid the issue. The firm’s co-founder Neeraj Khandelwal said the firm wanted to absorb about 4.4 million stranded users on WazirX. The firm highlighted that it wants to help, but the bulk of the responsibility lies on WazirX’s acceptance of their gesture.