Indian cryptocurrency exchange CoinSwitch has unveiled earlier today on January 7th a recovery initiative worth ₹600 crore (over $70 million) to aid users of WazirX, an embattled platform that faced a significant security breach in July 2024.
The program, named “CoinSwitch Cares,” aims to help affected users recover their losses while fostering the growth of the Indian crypto community.
What is the Recovery Plan?
The recovery initiative will span two years, during which CoinSwitch will disburse funds in staggered intervals directly into eligible users’ accounts. Users will receive their rewards in either Indian rupees (INR) or cryptocurrency, depending on their preference.
Ashish Singhal, co-founder of CoinSwitch, emphasized the flexibility of the program, stating, “The amount is deposited directly into a user’s account with no lock-in. They can use it to withdraw to their bank accounts, sell, or trade.”
To participate, users must provide proof of their losses via WazirX loss statements. This ensures that only verified victims of the breach benefit from the initiative.
The program offers several types of rewards, including a sign-up bonus of up to 10% of deposited funds, a share of revenue generated through the program over 24 months, and referral bonuses of up to 5% for users who bring other affected WazirX users to CoinSwitch.
Enhancing Security and Community Confidence
CoinSwitch has reassured participants of its robust security measures, which include enterprise-grade custody solutions, comprehensive risk management, and stringent policy frameworks. These measures are designed to instil confidence in users transitioning from WazirX to CoinSwitch.
Also Read: WazirX Reveals Plans For Creditors’ Fund Recovery: When Will Users Get their Money?
Singhal highlighted the broader vision behind “CoinSwitch Cares,” describing it as more than just a recovery program. “This initiative is our commitment to building a secure and thriving crypto ecosystem in India.
It’s an opportunity for users to turn setbacks into comebacks while reinforcing the growth of the Indian crypto community,” he said.
Step-by-Step Recovery Process
To access the benefits of the program, users must follow a straightforward process. First, they can estimate their potential recovery using the calculator available on the “CoinSwitch Cares” portal.
Next, users must sign up on CoinSwitch and complete the Know Your Customer (KYC) verification. Existing users can log in directly to begin.
Deposits can be made from any supported platform to start earning rewards immediately. Once WazirX enables withdrawals, affected users can transfer their funds to CoinSwitch to maximize their recovery benefits.
The program’s reward distribution begins on February 7, 2025, with additional incentives accruing as WazirX resumes operations.
Recovery Timeline and Community Engagement
While the recovery program is open for 24 months, CoinSwitch estimates that most affected users will recoup 100% of their losses within eight months after WazirX releases funds.
The initiative also encourages community participation, as users who refer others can expand the revenue redistribution pool, speeding up recovery for all participants.
This innovative approach underscores CoinSwitch’s dedication to creating a resilient and transparent crypto environment in India. By addressing the fallout from WazirX’s breach, “CoinSwitch Cares” serves as a lifeline for affected users and a testament to the company’s commitment to the Indian crypto market.
Also Read: Indian Police Arrest Bengal Man As Suspect In $230 Million WazirX Crypto Hack