The crypto community criticized WazirX’s socialized loss plan after the hack.
After the recent WazirX hack that resulted in a $230 million exploit, the cryptocurrency exchange's proposed solution to deal with the loss has faced strong opposition from its user base.
The crypto community has been heavily critical of the company's plan, known as “social losses” or the 55/45 approach, especially after user feedback showed the criteria to be highly disapproved.
Anger among users
The proposed 55/45 approach suggests that users can trade only 55% of their assets in Indian currency, with the remaining 45% converted to USDT stablecoin or other tokens. These converted tokens will be locked on the platform. This decision applies to all users, regardless of whether the hack affects their funds or not.
A 55/45 poll, which began on July 27 and ended on August 3, showed strong disapproval of the proposal. The users expressed their displeasure and displeasure with the scheme, feeling that it unfairly affected all users rather than speaking specifically to those who suffered losses from the hack.
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A user identified as @aaakasei expressed his displeasure on social media, taking serious action against WazirX CEO Nishal Shetty:
“…my suggestion to Nishal Shetty: dude, just file bankruptcy, delete twitter and start memecoins…”
Another user @TakaSacca19744 questioned the transparency and accountability of the exchange and asked why it was taking so long to provide information and solve the problem and why it was being delayed and unfair to users.
The community needs better protection
The response to the 55/45 approach reflects the growing frustration and uncertainty among WazirX users, many of whom are unable to withdraw their funds. The exchange's handling of the hack and subsequent communications left its entire user base vulnerable and uncertain about their future investments.
However, Wazir X founder Nishal Shetty emphasized that the poll was only to seek public opinion and not a legally binding decision. The Indian cryptocurrency exchange has denied allegations made by TruthLabs about security vulnerabilities that led to a massive $230 million hack.
The recent hack of the exchange prompted India-based Bharat Web3 Association (BWA) to push for stronger cyber security frameworks and improved consumer protection protocols in the crypto industry.
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