The CEO of Indian crypto exchange Coindcx has strongly criticized Wazirx’s cyberattack response after the platform recently suffered a massive $230 million breach. Sumit Gupta, CEO of Coindcx, voiced his concerns on social media platform X, condemning Wazirx’s decision to pass 45% of the losses onto its customers. “Making customers directly absorb the 45% losses is utter nonsense,” Gupta stated, urging Wazirx to take full responsibility for the incident.

Wazirx’s cyberattack response has involved a controversial strategy known as socialized loss, which aims to distribute the financial impact evenly among users. The exchange claims that its 55/45 approach offers a faster, more flexible solution for recovery. However, Gupta criticized this method, arguing that it unfairly burdens customers and fails to prioritize the community’s best interests.

Wazirx has been providing daily updates on its recovery efforts, assuring users about the security of INR funds and addressing concerns about asset valuation and USDT conversion. Despite these assurances, Gupta remains skeptical. “The first contribution to losses should ALWAYS come from the company (i.e., Wazirx) and the treasury and assets the company holds,” he asserted. “I have not seen any such commitment from the company side. Instead, making customers directly absorb the 45% losses is utter nonsense.”

In response to the backlash, Wazirx has set up a poll for user participation regarding the platform’s reopening and has launched a $23 million bounty program to recover the stolen assets. Legal action is also being pursued to address the breach. Nonetheless, Gupta remains critical, stating that the poll options are framed to protect Wazirx’s business interests rather than the customers. “Hate to be saying this, but the way Wazirx is handling this entire situation isn’t community-first and this IMO won’t go down well for them,” he said.

The Wazirx cyberattack has sent shockwaves through the crypto community, raising significant concerns about the security measures of cryptocurrency exchanges. Gupta concluded his critique by urging Wazirx to reconsider their approach and prioritize the needs of their customers, stating, “Hopefully, they will reconsider their approach and do what’s right by the customers.”

As the investigation and recovery efforts continue, the crypto community watches closely, hoping for a resolution that ensures the safety and security of user funds in the future.