Indian cryptocurrency company CoinSwitch has announced the establishment of a $70 million recovery fund to assist users affected by the 2024 WazirX cyberattack. “CoinSwitch Cares,” the project, aims to offer financial assistance to victims for a period of two years, while simultaneously fostering confidence in the Indian crypto industry.
The campaign invites affected consumers to claim monies by providing proof of losses, such as WazirX balance statements. CoinSwitch offers three types of compensation: sign-up bonuses, revenue-sharing advantages, and referral rewards. The service currently does not support straight crypto withdrawals, but users can convert their cryptocurrencies to Indian rupees.
CoinSwitch co-founder Ashish Singhal cited the company’s financial stability as the main cause behind the self-funded initiative. He claimed that CoinSwitch is using its resources to help the crypto community and promote the widespread use of digital assets.
To ensure equitable distribution, CoinSwitch intends to authenticate user claims with WazirX account information. Once WazirX re-enables cryptocurrency withdrawals, the process will be more streamlined, allowing for more accurate tracking of affected users’ holdings.
CoinSwitch’s action is more than just a relief; it also indicates a strategic commitment to boost the Indian cryptocurrency ecosystem. CoinSwitch’s goal in targeting WazirX’s four million customers is to use this difficult scenario as an opportunity to create confidence and loyalty among the crypto community.
The WazirX breach, which occurred in July 2024, reportedly caused $235 million in losses. The event has sparked criticism, with suspicions that WazirX’s irresponsibility contributed to the breach. CoinSwitch’s quick response to victims is a crucial step toward restoring trust in the industry.
