CoinSwitch announces ₹600 cr recovery fund for WazirX users
CoinSwitch, a crypto platform, announced ‘CoinSwitch Cares,’ a ₹600 crore recovery programme on Tuesday for users impacted by the alleged WazirX cyberattack of July 2024. The initiative allows users to estimate losses and switch over to CoinSwitch, after which the platform will transfer the amount to users’ CoinSwitch accounts once WazirX releases the funds.
Last year, WazirX, a cryptocurrency exchange, suffered a massive cyberattack that impacted over 4 million crypto users in India. The incident not only led to a loss of over $230 million but also severely affected India’s confidence in the crypto ecosystem. According to CoinSwitch, its latest initiative is an attempt to encourage users to participate in the current market cycle, gaining from the market price-driven upside and momentum. While the initiative is open for 24 months, the company claimed that most affected users will be able to recover 100 per cent of their losses within 8 months from the time WazirX releases the funds.
Under the initiative, users can either deposit funds directly into CoinSwitch or wait for WazirX to release their funds before transferring them. The platform will offer rewards based on the WazirX statements uploaded for verification purposes.
The rewards include assured signup rewards, where eligible users can earn up to 10 per cent of the funds deposited through this program over two years. The revenue redistribution reward allows CoinSwitch to pool the trading revenue generated from this program and distribute it to affected users in proportion to their losses. Referral rewards help users earn up to 5 per cent of the deposited funds by referring other affected WazirX users. These rewards will be credited to users’ CoinSwitch accounts regularly starting February 2025.
“CoinSwitch Cares is our way of supporting the Indian crypto community while fostering long-term growth. As an industry leader, we wanted to do our bit to help the ecosystem, especially now when the market has picked up. Our goal is to ensure affected users don’t miss out on the current market action and can put their crypto to work at the earliest. This not only provides users an opportunity to recoup losses but also to earn from trading,” said Ashish Singhal, Co-founder of CoinSwitch.