CoinSwitch launches $70M recovery fund for WazirX hack victims

Indian cryptocurrency exchange CoinSwitch has launched a $70 million recovery fund for users of the hacked WazirX (CRYPTO:WRX) platform.

The initiative, called "CoinSwitch Cares," is aimed at helping those who lost money in the alleged cyberattack on WazirX in July 2024.

The fund, worth 600 crore Indian rupees ($69.9 million), is set to distribute compensation over the next two years.

CoinSwitch's goal is to support the Indian crypto ecosystem by offering financial aid to affected WazirX users.

To qualify for the recovery fund, users need to provide proof of their losses through WazirX loss statements.

CoinSwitch's FAQ section specifies that users must submit these documents and any additional evidence requested by the company to verify their claims.

The recovery process will involve three types of rewards: sign-up bonuses, revenue sharing, and referral bonuses.

However, CoinSwitch clarified that while users can sell their crypto and withdraw in rupees, direct crypto withdrawals are not currently supported.

CoinSwitch will fund the entire program using its own cash reserves.

Ashish Singhal, co-founder of CoinSwitch, explained that the company has enough runway to support the program for up to five years, with the current bull run adding more value to the ecosystem.

The recovery fund targets around four million WazirX users.

CoinSwitch will use balance statements to calculate losses and determine the amount of compensation to be distributed.

Once WazirX resumes crypto withdrawals, CoinSwitch plans to track claims more efficiently.

This move follows WazirX's suspension of withdrawals after a $235 million hack in July 2024, which caused controversy in the crypto space.

WazirX’s custody provider, Liminal, pointed to compromised devices as the cause of the breach.

At the time of reporting, the WazirX (WRX) price was $0.02526.