India based crypto exchange WazirX has confirmed on Saturday via blog post and relayed on X today via video to socialize the losses of its hack which resulted in losses of over $230 Million.

If you held funds on their platform then you will receive 55% of funds available right away for trading or withdrawals while the remaining 45% will be converted into USDT Tokens and locked to be redeemed in the future

Something important to note here is If you’ve held FIAT (INR in this case) in your account then your FIAT holdings will not be affected at all and will be fully available to trade or withdraw since the assets stolen were in Crypto and no FIAT was affected or stolen by the hack.

This is yet another reminder of the classic “Not your Keys, NOT YOUR COINS” and serves as a cautionary tale to always self-custody your tokens preferably using hardware wallet and never give away your seed phrase to anyone.

Our Take

Privatizing the profits and socializing the losses doesn’t really sit well, hopefully everyone can be made whole soon. Customers also asked WazirX why it wasn’t tapping into its profit reserves to make everyone whole.

WazirX is just setting bad precedent that any exchange can get away with protecting users funds responsibility by just socializing the losses.