- WaxirX seeks Binance’s help to compensate the affected users of the recent $230 million hack.
- While receiving stark criticism for its recovery plan, WazirX approaches Binance, which holds $80M worth of WRX tokens.
- As the negotiations are at the initial stage, there is not yet any confirmation regarding the proposal.
WazirX, an Indian crypto exchange recently hit by a $230 million hack, has turned to its former partner Binance for assistance in compensating affected customers. This comes after WazirX’s controversial “55/45 approach” recovery plan faced significant backlash.
On July 18, WazirX disclosed a severe security breach resulting in the loss of over $230 million in various tokens, including SHIB, ETH, MATIC, PEPE, USDT, and GALA. The hacker had reportedly exploited the platform’s multi-signature wallet vulnerabilities.
In response to mitigate its customers’ losses, WazirX introduced the “55/45 approach,” allowing users immediate access to 55% of their affected assets, with the remaining 45% converted to USDT. Ideated as a way to offer faster relief than traditional schemes, the plan instead drew criticism from customers.
This has prompted the latest move by WazirX to seek help from Binance, its former partner holding a significant portion of WazirX’s revenue and WRX tokens. As of July 18, Binance reportedly held $80 million worth of WRX. A source familiar with the matter revealed that Binance’s control over these assets limited WazirX’s ability to use its own funds for reimbursement.
“Their legal dispute is still ongoing. There are components of WazirX’s business which are still under Binance’s control, including the revenue — the surplus of it. Even its WRX token is under their control. So they have reached out to Binance and the talks are on but at early stages.”
However, Binance and WazirX remain locked in a legal battle. While sources indicate that negotiations between the two platforms are still in the early stages, there is no confirmation on any proposal yet, and Binance has not commented on the matter.
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