Establishment of Cryptocurrency Investor Protection Fund by CoinDCX
In response to the recent cyberattack on WazirX, CoinDCX, India’s largest cryptocurrency exchange, has taken a proactive step by establishing the Cryptocurrency Investor Protection Fund (CIPF). This fund is designed to compensate users for any losses that may occur due to rare circumstances such as security breaches or adverse events. With an initial allocation of Rs 50 crore, CoinDCX aims to reassure its customers and enhance trust within the crypto ecosystem.
Measures to Enhance Trust
The decision to create the CIPF reflects CoinDCX’s commitment to maintaining trust within the crypto ecosystem. By adding 2% of brokerage revenue to the fund and increasing its size over time, the exchange is taking a significant step towards building long-term trust in the Indian crypto industry. CoinDCX co-founder Sumit Gupta emphasized the importance of safeguarding clients’ assets and ensuring their security by spreading assets across multiple vaults.
WazirX’s Efforts to Recover Stolen Funds
Following the cyberattack that resulted in the loss of $230 million, WazirX has been working diligently to recover the stolen funds and restore investor confidence. The exchange recently filed an FIR regarding the theft and announced a bounty program to incentivize the recovery of frozen funds. However, some of WazirX’s strategies, such as the proposed plan to “socialize” losses, have faced criticism from industry experts like CoinDCX’s Sumit Gupta and Mudrex’s CEO Edul Patel.
Despite the challenges, WazirX CEO Nischal Shetty remains optimistic about the exchange’s future, engaging in discussions with major exchanges worldwide for support and potential partnerships.
