CoinSwitch, one of India’s leading cryptocurrency exchanges, has announced a $69.9 million support fund to aid users affected by the July 2024 WazirX hack.
Details of the CoinSwitch Support Fund
The $69.9 million fund will be distributed over two years. To receive compensation, users must provide proof of their losses. CoinSwitch is financing the program entirely from its reserves, reflecting its dedication to supporting the Indian crypto community. The fund aims to assist four million affected users, providing financial relief and restoring confidence in the local crypto market.
What Happened with WazirX
WazirX experienced a hack in July 2024, resulting in a loss of $235 million. The incident exposed vulnerabilities in the platform's infrastructure, leading to widespread criticism from users and regulators. It was reported that compromised devices were used by WazirX employees, exacerbating the breach's impact.
CoinSwitch’s Motivation and Vision
The support fund is not just a financial initiative but a statement of support for the Indian crypto ecosystem. CoinSwitch aims to strengthen user trust in cryptocurrency platforms and highlight the importance of robust security measures. This move positions CoinSwitch as a leader in corporate responsibility, setting a new standard for how companies can support users during crises.
CoinSwitch’s $70 million support fund is a bold and compassionate step toward supporting victims of the WazirX hack. This initiative underscores the platform’s leadership and sets a new benchmark for corporate responsibility in the Indian crypto industry. Over the next two years, the fund has the potential to reshape user trust and reinforce the importance of security across the cryptocurrency landscape.
