WazirX exchange implements a two-tiered recovery plan for users following $230 million crypto theft

Indian cryptocurrency exchange WazirX has published its recovery strategy online, following a cyberattack that resulted in the loss of over $230 million worth of crypto assets. The exchange has implemented a "socialized loss" approach to distribute the impact equitably among users.

To mitigate the financial burden on affected users, WazirX has introduced two options:

Option A: Prioritized recovery with limited asset accessibility. Users who choose this option will be given priority in the recovery process but cannot withdraw their funds.

Option B: Immediate access to assets with delayed recovery. Users opting for this option can trade and withdraw their funds but will have lower priority in the recovery process.

Users can switch between options before initiating any trades or withdrawals. WazirX stated that it will employ a "balanced crypto basket" approach to restore stolen assets, distributing a portion of recovered funds to all users who opted for Option A. A Balanced Crypto Basket is a mix of different cryptocurrencies combined to ensure that the portfolio remains stable and fair for users.

To ensure transparency, WazirX has committed to providing regular updates on the recovery process and has already outlined a plan that prioritizes user interests while working towards restoring full platform functionality. WazirX further highlighted that the stolen assets included a variety of cryptocurrencies, with SHIB and FLOKI tokens among the affected. The crypto exchanged has previously confirmed that the incident involved a breach of its Liminal multisig wallet.