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In the aftermath of the recent $230 million WazirX hack, the cryptocurrency exchange’s proposed solution to address the losses has met significant resistance from its user base.&nbsp;
The crypto community heavily criticized the firm’s plan, known as the “socialized losses” or 55/45 approach, with a poll of WazirX users reportedly <a href="https://www.moneycontrol.com/technology/wazirx-hack-crypto-exchange-drops-plan-to-socialise-losses-after-backlash-article-12786150.html" target="_blank" rel="noopener nofollow">showing</a> overwhelming disapproval of the measure.
<h3 data-ct-non-breakable="true" id="outrage-among-users">Outrage among users</h3>
The proposed 55/45 approach suggested that <a href="https://cointelegraph.com/news/wazirx-socialized-loss-strategy-230m-hack">users could trade only 55%</a> of their assets on the Indian exchange while the remaining 45% would be converted into Tether (<a href="https://cointelegraph.com/tether-price-index">USDT</a>) or other tokens. These converted tokens would then be locked on the platform. This decision would apply to all users, regardless of whether their funds were affected by the hack.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/05b5fc21-cfb0-451d-ace6-d42bc8b87dd2.png" alt="Crypto community slams WazirX’s ‘socialized losses’ plan after hack" title="">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/TakaSacca19744/status/1819685535436190062" target="_blank" rel="noopener nofollow">TakaSacca19744</a>
 </figcaption>
</figure>
The poll for the 55/45 approach, which began on July 27 and concluded on Aug. 3, revealed significant opposition to the proposal. Users expressed their frustration and dissatisfaction with the plan, with some saying it unfairly impacted all users rather than specifically addressing those who had suffered losses in the hack. 
Related:&nbsp;<a href="https://cointelegraph.com/search?query=WazirX#:~:text=Bankrupt%20crypto%20firm%20Genesis%20completes%20restructuring">Bankrupt crypto firm Genesis completes restructuring</a>
One user, aka$h,<a href="https://x.com/aaakasei" target="_blank" rel="noopener nofollow"></a> <a href="https://x.com/aaakasei/status/1819705035917275333" target="_blank" rel="noopener nofollow">voiced</a> their displeasure in an X post, suggesting drastic measures to WazirX’s CEO, Nischal Shetty: 
<blockquote data-ct-non-breakable="true">
 “My suggestion to Nischal Shetty: dude, just file bankruptcy, delete Twitter, and launch memecoins.”
</blockquote>
Another user, TakaSacca19744, <a href="https://x.com/TakaSacca19744/status/1819685535436190062" target="_blank" rel="noopener nofollow">questioned</a> the exchange’s transparency and accountability, asking why it is stalling the process. They also said it is being unfair to its users by taking too long to provide information and resolve the issue.
<h3 data-ct-non-breakable="true" id="community-demands-better-security">Community demands better security</h3>
The backlash against the 55/45 approach shows the growing frustration and uncertainty among WazirX users, many of whom cannot withdraw their funds. The exchange’s handling of the hack and subsequent communication has left its entire user base feeling uncertain about the future of their investments.
However, Shetty has since <a href="https://x.com/NischalShetty/status/1819031576971550880" target="_blank" rel="noopener nofollow">emphasized</a> that the poll was merely a means to solicit community input, not a legally binding decision. The Indian cryptocurrency exchange has also rejected allegations by TruthLabs <a href="https://x.com/BoringSleuth/status/1819144838157422878" target="_blank" rel="noopener nofollow">regarding</a> security vulnerabilities that led to the $230 million hack.
The hack has prompted the Bharat Web3 Association in India to prioritize the <a href="https://cointelegraph.com/news/bharat-web3-association-cybersecurity-wazirx-hack">development of robust cybersecurity frameworks</a> and enhanced consumer protection protocols within the crypto industry.
Magazine: <a href="https://cointelegraph.com/magazine/crypto-sec-turbo-toad-phishing-attack-and-evolve-data-breach/">Crypto-Sec: Evolve Bank suffers data breach, Turbo Toad enthusiast loses $3.6K</a>

Crypto community slams WazirX’s ‘socialized losses’ plan after hack

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Cointelegraph

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