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The cryptocurrency world is buzzing with controversy after WazirX, a prominent cryptocurrency platform, announced its controversial approach to dealing with a significant security breach that resulted in the loss of over $230 million worth of cryptocurrency assets. WazirX's plan, dubbed the '55/45 approach,' proposes distributing the losses among all its users, sparking criticism from CoinDCX, a major rival in the space.
CoinDCX co-founder Sumit Gupta took to X, formerly Twitter, to express his strong disapproval of WazirX's strategy, arguing that it's not 'community first.' Gupta emphasized that the company itself should bear the primary responsibility for the losses, utilizing its own treasury and assets before asking customers to absorb any portion of the financial burden. He pointed out that WazirX has not shown any commitment to covering losses from its own resources, instead pushing the responsibility onto its users.
Gupta further highlighted the potential negative impact this incident could have on the overall crypto ecosystem. He believes that WazirX's approach undermines trust and could discourage participation in the market. He also criticized the way WazirX framed the poll options on its platform, suggesting it was designed to protect the business' interests rather than prioritizing customer welfare.
WazirX's decision to socialize the losses has been met with significant backlash from users on its platform. Many express outrage that the company failed to adequately secure its platform and is now shifting the burden onto its customers. The controversy underscores the importance of robust security measures and transparency in the cryptocurrency industry, particularly in the aftermath of a major security breach.