Indian cryptocurrency exchange CoinSwitch has announced a recovery fund to assist victims of the alleged $235 million WazirX hack, targeting approximately four million affected users.
The “CoinSwitch Cares” recovery fund, valued at 600 crore Indian rupees ($69.9 million), will provide financial assistance to WazirX users who suffered losses due to the July 2024 security breach. The program offers rewards in three categories: sign-up bonuses, revenue sharing, and referral bonuses. Users must submit proof of losses, including WazirX loss statements, to claim funds. CoinSwitch noted that direct crypto withdrawals are not supported, though users can sell crypto and withdraw funds in rupees.
CoinSwitch announced the initiative on Jan. 7, 2025. The recovery program is expected to distribute funds over the next two years.
The fund is aimed at Indian WazirX users impacted by the hack. CoinSwitch, headquartered in India, plans to integrate these users into its platform through the recovery program.
CoinSwitch’s move comes as part of an effort to expand its customer base and strengthen the Indian crypto ecosystem following the WazirX breach. The hack caused significant disruption, with WazirX suspending withdrawals amid allegations of security negligence. CoinSwitch’s program aims to restore trust in the crypto market while capitalizing on WazirX’s setbacks.
CoinSwitch will fund the recovery initiative from its cash reserves, leveraging its strong financial runway supported by major investors like Andreessen Horowitz and Coinbase Ventures. The company will screen WazirX users using their balance statements to calculate losses and distribute rewards. CoinSwitch co-founder Ashish Singhal emphasized that the program demonstrates the company’s commitment to supporting affected users and rebuilding confidence in the crypto sector.
This initiative underscores CoinSwitch’s strategic approach to attracting WazirX users while addressing a significant breach in the Indian crypto landscape. The recovery fund not only aids victims but also positions CoinSwitch as a reliable player in the evolving crypto ecosystem.
