CoinSwitch Launches ₹600 Crore Recovery Program for WazirX Hack Victims

Key Takeaways

• The recovery program aims to provide affected users with a pathway to recover their losses by transitioning to CoinSwitch.
• The program is expected to enable most users to recover 100% of their losses within eight months of the fund release

Leading crypto exchange, CoinSwitch, has announced a ₹600 crore recovery initiative titled “CoinSwitch Cares” to assist users affected by the  $230 Million WazirX hack in July 2024. 

The recovery program aims to provide affected users with a pathway to recover their losses by transitioning to CoinSwitch. Once users estimate their losses and submit necessary documentation, including WazirX balance statements, CoinSwitch will verify their claims and transfer the equivalent funds to users’ CoinSwitch accounts after WazirX releases the frozen funds. 

The program is expected to enable most users to recover 100% of their losses within eight months of the fund release, with the initiative remaining open for two years to ensure broad participation.

Ashish Singhal, co-founder of CoinSwitch, stated that the company would fund the program directly from its reserves. He said, “We have about five years of runway from where we sit. This program is being funded directly from our pockets to assist users and restore confidence in the crypto ecosystem.” He also noted that the ongoing crypto market upswing has bolstered the company’s ability to support the initiative.

Under the program, participants can benefit from a range of incentives, including sign-up bonuses, revenue-sharing rewards, and referral bonuses. For instance, eligible users can earn up to 10% of their deposited funds over two years, and trading revenue generated through the program will be redistributed among affected users proportionally to their losses.

Further, users can also earn referral rewards by encouraging other impacted WazirX users to join CoinSwitch. The rewards are set to begin crediting to users’ accounts starting in February 2025.

The WazirX hack eroded trust in India’s crypto ecosystem. The exchange faced criticism over its handling of the breach, with its custody provider, Liminal, alleging that the exchange used compromised devices, which may have contributed to the attack. 

Following the breach, WazirX suspended withdrawals and has been working on a recovery plan. The exchange is pursuing a scheme in Singapore that includes releasing $284 million in liquid assets and issuing recovery tokens to affected users. Crypto withdrawals on WazirX are expected to resume by mid-April 2025, contingent on the approval of its recovery proposal.

Founded in 2017, CoinSwitch is among India’s largest crypto exchanges, with a user base exceeding 20 million.