CoinSwitch has announced the launch of a ₹600 crore recovery fund aimed at assisting WazirX users who were impacted by a cyberattack in July 2024. The two-year program, named *CoinSwitch Cares*, is designed to be a unique program that would benefit last year’s WazirX scam victims. For context, the India-based exchange suffered a devastating scam that saw it forfeit over $200 million in July 2024, marking one of the biggest crypto scams of the year.
The recovery initiative will allow affected WazirX users to reclaim up to 10% of their deposited funds over the next two years. The fund is part of CoinSwitch’s broader efforts to support the Indian crypto community and offer a measure of compensation to those who lost funds during the alleged attack.
Announcing #CoinSwitchCares – a ₹600 Crore recovery fund for WazirX users.
— CoinSwitch: India's Simplest Crypto App 🚀 (@CoinSwitch) January 7, 2025
CoinSwitch Cares is a ₹600 crore recovery program to help WazirX users who lost money due to the alleged cyber attack of July 2024. With this two-year program, we want to help affected users recoup… pic.twitter.com/Ql0TG25ztu
How the CoinSwitch Cares Program Works
To participate in the recovery program, affected users must first estimate their losses using a dedicated calculator provided by CoinSwitch. Once they have assessed their potential recovery, users are required to sign up on CoinSwitch and complete the Know Your Customer (KYC) process to activate their account.
After registration, users can start depositing funds, either in Indian Rupees (INR) or cryptocurrency, to begin earning their assured rewards. Existing CoinSwitch users can immediately log in and start participating in the program.
The program also includes a referral component, where users can earn additional rewards by inviting other affected WazirX users to join. Referral participants can receive up to 5% of the deposited funds from those they refer.
Revenue Redistribution to Support Affected Users
CoinSwitch plans to redistribute the revenue generated from trading activity within the program to the affected users. This redistribution will be based on the proportion of each user’s loss, with the goal of providing further compensation throughout the two-year program. Once WazirX resumes withdrawals, users will be able to transfer their funds to CoinSwitch to maximize the recovery benefits.
