On July 18, 2024, WazirX, one of the largest and most popular cryptocurrency exchanges in India, experienced a cyberattack targeting one of their wallets (also known as multi-signature wallet), resulting in the theft of digital assets worth exceeding $234 million. Multi-signature wallets are cryptocurrency wallets which requires multiple signatures to authorise or initiate transaction to protect digital assets from unauthorised access.
As a result of the theft, WazirX’s ability to maintain 1:1 collateral with assets was deeply impacted. The affected wallet was managed using Liminal’s digital asset custody and wallet infrastructure. The tokens which were stolen are still lying with the attacker and are useless as of now, as their utility comes into use only when one tries to encash them.
CoinSwitch, a mobile-first crypto exchange and a competitor to WazirX, has now introduced a recovery program called CoinSwitch Cares to recover and build wealth and also to keep crypto investors safe from the muddle they faced in July 2024 with WazirX.
On the official website, CoinSwitch announced, “Lost assets with WazirX? Introducing CoinSwitch Cares, a Rs 600 crore recovery program”.
This program, which aims to help users recover their losses and give a boost to the cryptocurrency community of India, is planning to run for the next two years.
The Rules
According to CoinSwitch, this recovery program is open to everyone who lost money in the alleged cyberattack on WazirX. From the date of introduction, users can visit the CoinSwitch website to estimate rewards and the first step towards recoup.
Users are given the option to deposit funds immediately or wait for WazirX to release their funds and then deposit to CoinSwitch. The sign-up process is mandatory for this program, and users have to upload their WazirX loss statements for verification, and to estimate the rewards. The loss statements are to be submitted through the CoinSwitch portal.
Users also have the authority to sell their crypto and withdraw the profit in Indian currency anytime. However, CoinSwitch also mentions that crypto withdrawal is not supported at the moment. The value of the rewards increases over time and are paid till the deposited funds remain with CoinSwitch.
This program promises the potential to offer significant financial help to over 4 million affected crypto investors. CoinSwitch estimates that based on the value of January 7, 2025, an average user may be able to recover 100 per cent of their lost assets.
Every user will also get a sign-up bonus, which is capped at Rs 15,000 per user, and a referral reward worth 10,000 per user. The maximum amount of cumulative awards is the user’s entire loss as a result of the purported WazirX hack.
Sign-Up Process
Here is the step-by-step process to enrol oneself in the CoinSwitch Cares recover program.
Estimate The Loss: Use the calculator provided by CoinSwitch to estimate your potential recovery and reward.
Sign-Up And KYC: Register yourself and complete the KYC process using necessary documents in order to activate the account. Existing users of CoinSwitch can enrol with a regular sign-in process.
Deposit: You can deposit money (INR) or crypto from anywhere to start earning your potential sign-up reward.
Deposit From Wazirx: If WazirX allows you to withdraw, you can start transferring those funds to CoinSwitch to balloon your recovery benefits and rewards.
How To Know Your WazirX Holdings
Step 1: Open the link on the WazirX platform and log in to your existing WazirX account, if you have been logged out somehow. Once you are in, you should see a rebalancing calculator on your screen.
Step 2: Click on the blue arrow on the card that says “Your Share of Liquid Assets”. You will be able to see a breakdown card.
Step 3: Enter the value shown under “Your Claims” section. The value will be shown in USDT. Convert the value to INR using the most updated USDT/INR conversion rate and you can find your total WazirX holdings.
Getting WazirX Loss Statement
Here’s how you can get your WazirX loss statement.
Step 1: Click on the profile section on WazirX homepage.
Step 2: Select the “Account Settings” option from the Profile section.
Step 3: From the “Account Settings” option, click on “DOWNLAOD REPORTS”.
Step 4: From the “Trading Report” dropdown menu, select the “Current Month”. Check the “Current Coin Balances” box and click on “REQUEST TRADING REPORT” to download the report.
Step 5: You will receive an email with an Excel attachment within a few minutes, which you will have to upload on the CoinSwitch Cares page.
CoinSwitch has pledged to adhere to strict security protocols, including enterprise-grade custody solutions, robust policy engines, and comprehensive risk management practices to safeguard the digital assets.
In the answer to how this initiative will benefit CoinSwitch while supporting the broader crypto industry, CoinSwitch has said: “The need of the hour is to rebuild trust with the Indian crypto users who have been affected by the alleged cyberattack. As a market player, we can only survive if the industry is thriving.”
