CoinSwitch, an Indian crypto exchange, is set to come into play in helping the victims of the WazirX hack. As the exchange announced on X earlier today (Jan. 7, 2024), it has introduced a program namely ‘CoinSwitch Cares’ through which it will help those that incurred in the cyberattack recover their funds.
https://twitter.com/CoinSwitch/status/1876492480931401823
The recovery program is worth ₹600 crore or rather approximately $70 million. Besides helping the affected users recoup their money, the crypto exchange also aims to use the program to develop the Indian crypto ecosystem.
Details of the WazirX Hack
The WazirX hack happened in July. 18, 2024 resulting in loss of $234.9 million. Regarded as India’s largest crypto hack, the hack occurred due to a new and poorly designed multi-signature wallet system.
Once the cyber attackers realized an opportunity for breach, they deployed a fake smart contract and reconfigured the wallets just days before the attack. The wallet reconfiguration was to make the attack undetectable by the exchange’s security team. The hackers managed to make it away with 35,000 ETH and other cryptocurrencies totaling to $234.9 million.
Despite the police arresting a suspect, Masud Alam from West Bengal, attempts to recoup the lost funds have remained futile. This has resulted in further backlash from both users and creditors of the platform. However, with the recent CoinSwitch Cares program, users that lost their funds finally get a chance to recoup their money.
CoinSwitch Cares Recovery Program
The CoinSwitch Cares program is expected to run for two years. Through this period, CoinSwitch will distribute the funds from the program to the WazirX hack victims. However, the disbursement will happen in staggered intervals and will be made in either Indian Rupees (INR) or equivalent amount in crypto.
Through the program, WazirX victims stand a chance to earn various types of rewards. These include; assured bonus of up to 10% of funds deposited, redistribution of the program’s revenue in proportion to victim’s loss and referral rewards where victims will earn up to 5% of deposited funds for referring fellow WazirX victims to CoinSwitch.
This program, however, is only set to benefit the $234.9 million loss victims. To ensure legitimacy of loss, CoinSwitch will require all victims to provide a statement of loss from WazirX.
Commenting about the program, CoinSwitch co-founder, Ashish Singhal, highlighted how the victims will get the disbursed funds. He stated, “ they will get it into their wallet with which they can deposit it back to their bank accounts, sell it, or trade. Once WazirX opens crypto withdrawals, the programme will disburse based on those crypto deposits.”
How the Recovery Process Will Work?
WazirX victims will have to follow a 4 step process in the recovery program, as per the official CoinSwitch guide. First, eligible victims will have to estimate their rewards and recovery amount through the CoinSwitch calculator. The calculator can be found on the CoinSwitch Cares portal.
The victims will then be required to register an account on CoinSwitch. They can do so by signing up and completing the mandatory KYC process.
After signing up on CoinSwitch, the victims can then proceed to earn the assured deposit reward by depositing funds. These users can deposit in INR or crypto and the deposits can be made from anywhere across the world.
The final step for users will be to deposit funds from WazirX once the exchange allows withdrawal. This will give users a chance to maximize their benefits through the CoinSwitch Cares program rewards.
Up to 100% Recovery for WazirX Hack Users
CoinSwitch estimates that the users stand a chance for up to 100% recovery. “CoinSwitch estimates that based on today’s (as of 7th January 2025) values an average user may be able to recover 100% of his/her losses,” stated the user guide.
All the affected WazirX users will be able to recover their lost funds, earn rewards and be able to continue their crypto journey through the CoinSwitch Cares recovery program.
Furthermore, Singhal views CoinSwitch Cares as more than just a recovery program. Rather, the program highlights CoinSwitch’s commitment to creating not only a secure but also thriving Indian crypto ecosystem.
