CoinSwitch Announces ₹600 Crore Plan to Help WazirX Hack Victims

CoinSwitch, one of India’s largest cryptocurrency platforms, has announced a groundbreaking ₹600 crore recovery program to support over 4 million users impacted by the massive WazirX hack in July 2024. The hack, which saw $230 million vanish overnight, left users reeling and the Indian crypto market shaken.

But now, CoinSwitch is stepping in with a bold plan to not only recover losses but also restore faith in the industry. How will this initiative work, and what does it mean for India’s crypto future? Let’s dive into the details.

Responding to the WazirX Hack

The security breach at WazirX WazirX - [email protected] Centralised ExchangeCrypto trading and Information wiped out nearly 45% of its total crypto assets, leaving users frustrated and the exchange’s reputation in question. CoinSwitch has stepped up with a recovery plan aimed at helping victims reclaim their funds, earn rewards, and resume crypto trading confidently.

The program, which is being run completely from scratch with the funds that CoinSwitch has on its balance, speaks about the sincere desire of the platform to create trust in the Indian crypto market. 

The crypto exchange CoinSwitch which has recently garnered investments from Andreessen Horowitz, Tiger Global, and Coinbase Ventures has $300 million in its funding pool and has registered over 20 million users.

What the Recovery Plan Offers

The ₹600 crore program, valid for two years, provides the following benefits to WazirX hack victims:

• Upfront Signup Rewards: Eligible users can earn up to 10% of their lost funds over a two-year period.
• Referral Benefits: Users can recover up to 5% of their losses by referring other victims to the program.
• Revenue Redistribution: Trading revenues from this program will be shared proportionally among users based on their verified losses.

To participate, users must submit their WazirX account balance statements for verification. CoinSwitch will calculate individual losses and distribute funds accordingly. The process is designed to ensure transparency and fairness.

Staying Committed to the Crypto Community

Ashish Singhal, Co-founder of CoinSwitch, reaffirmed the platform’s dedication to supporting the crypto community during difficult times. He stated:

“Once WazirX starts allowing withdrawals from crypto, such claims can be analyzed, AUM ascertained and the subsequent rewards calculated.“

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A Timely Relief for the Crypto Market

CoinSwitch, which serves 33% of India’s crypto users, revealed that 87% of its customers contribute about 8% of claims across platforms. However, the WazirX hack caused losses exceeding ₹1,900 crore.

The recovery initiative is expected to help users recover their funds within 6–8 months of WazirX unlocking withdrawals. The announcement comes at a time when cryptocurrency markets are witnessing a surge, with Bitcoin prices hitting record highs.

CoinSwitch’s recovery plan is a vital step toward restoring trust in India’s crypto ecosystem. By offering financial relief and support, the initiative not only aids the affected community but also strengthens the platform’s role in building a sustainable and resilient crypto market.

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