CoinSwitch, a cryptocurrency platform in India, has launched a 600-crore Indian rupee fund, approximately $69.9 million, to help users affected by the WazirX security breach in July 2024.
Announced on January 7, the program called “CoinSwitch Cares” aims to provide financial relief to those who suffered losses during the alleged cyberattack.
The company plans to distribute the funds over two years to restore trust in the Indian crypto market.
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CoinSwitch co-founder Ashish Singhal emphasized that the program is entirely self-funded. He noted that their financial stability allows them to invest in initiatives that benefit the ecosystem.
Singhal explained:
We have about five years of runway from where we sit. The current Bull Run has only helped us get even more value into the ecosystem. We are funding this programme directly from our pockets.
The program is open to all users who can prove their losses through WazirX loss statements. Additional documents may be requested to confirm the claims.
According to CoinSwitch, the compensation will be offered in three forms: sign-up bonuses, revenue sharing, and referral rewards. Users will also be able to sell their cryptocurrency for Indian rupees, although direct crypto withdrawals are currently unavailable.
CoinSwitch will verify user claims using balance statements to ensure the proper allocation of funds. The company has stated that once WazirX enables crypto withdrawals, tracking claims will become more straightforward.
Meanwhile, FTX announced that the company would begin its plan to return money to the customers on January 3. How does FTX do that? Read the full story.
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