Following a setback with poll results, the Indian exchange has declined the 55/45 approach, also known as the plan to socialize losses, according to a recent WazirX hack update.
In the latest WazirX hack update following the $230 million breach, the exchange has opted to drop its plan of socializing losses.
The firm’s idea to socialize losses, known as the 55/45 approach, has sparked widespread backlash from the crypto community.
Following a poll conducted at the end of the previous month, the likelihood of the mentioned approach gaining traction became exceedingly low.
In the interim, the platform’s colossal user base, which is presently unable to withdraw their funds, is enveloped in a cloud of uncertainty.
WazirX Hack Update: No Clear Developments To Offer Users Relief
The latest WazirX breach update reveals a setback for the platform’s massive user base.
The 55/45 approach poll, which began on July 27, ended on August 3, with a tidal wave of criticism engulfing the idea.
Notably, the 55/45 approach, also known as the plan to socialize losses, was designed to enable clients to trade only 55% of their assets on the Indian exchange.
The remaining 45% of the assets were suggested to be converted into USDT stablecoin or other tokens.
Tokens converted will be locked on the platform.
This decision was proposed for all users, regardless of whether their funds had been stolen.
The crypto exchange has faced a significant backlash as a result of the plan’s unclear and ineffective rationalization.
Meanwhile, a source acquainted with the matter claimed, “The plan wasn’t final.”
Therefore, to restart operations, the exchange was required to establish a forward path and solicit feedback from the community.
According to a report by MoneyControl, WazirX decided to proceed cautiously following the blowback.
More Details On The Hack
Meanwhile, Nischal Shetty, the co-founder of WazirX, clarified that the poll was not legally binding, but rather was designed to gather feedback from the community.
Furthermore, the Indian crypto exchange recently disputed accusations of security flaws by TruthLabs, which purportedly resulted in a significant $230 million hack.
Notably, 45% of the users on the platform are presently stranded, impacted by the stolen funds.
Whilst, the remaining are left hanging with their assets locked on the WazirX exchange.
