The post $230M Hack Crisis: WazirX Asks Binance for Lifeline Amid Recovery Plan Dispute appeared first on Coinpedia Fintech News
WazirX, an Indian crypto exchange that recently lost $230M via a fraudster hack, has elicited criticism for its planned response, passing the losses down to the users. As complaints and dissatisfaction continue to increase, WazirX has sought help from its previous partner – Binance to help it come up with a means of compensating the affected clients.
WazirX Unveils a Rather Sustainable Yet Sisputed Plan for Recovery
After WazirX recently became a cyberattack victim and lost about $230 million of its users’ money, the platform’s new recovery plan has been criticised. The proposal aims to spread the losses across all the WazirX users, which has been a terrible decision for them, especially for the Indian users of the platform.
On July 27, WazirX introduced a poll offering users two options for handling their crypto assets:
1. Option A: Users can transact their crypto and have priority of their assets to be recovered in case of an attack, although they cannot withdraw it.
2. Option B: Again, users can trade and withdraw crypto and always have less priority regarding recovery. Users can opt for Option A before any trading or withdrawal.
The poll will end on the 3rd of August and WazirX pledges to assess the inputs provided by the clients to formulate a plan that will benefit the community. It was important for Shetty, the CEO of Wazirx, to state that the poll is not legally binding.
WazirX Seeks Help from Binance.
In this regard, WazirX has allegedly sought assistance from Binance, its partner in the past, to aid the clients who lost money. The sources from MoneyControl suggest that Binance had around $80M worth of WRX tokens on the hack date. As such, the exchange cannot perform a monetary reimbursement themselves, which forces them to reach out to Binance.
These two exchanges have a history of Binance having previously ties with WazirX, but the association was dissolved messily. Despite the court battles and, more recently, litigation between the two, WazirX has sought help from Binance to provide it with financial support to offset the costs the hacker imposed on the company.
An anonymous source quoted by MoneyControl said that the negotiations between WazirX and Binance are at a very preliminary stage. The source also specified that even though WazirX is still in a legal dispute with Binance, Binance still regulates some aspects of WazirX’s functioning, such as the exchange’s revenue and WRX token.