Following WazirX Hack, India's CoinDCX Launches $6M Investor Protection Fund

August 07, 2024 11:33 AM AEST | By Team Kalkine Media

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Following WazirX Hack, India's CoinDCX Launches $6M Investor Protection Fund — Image source: shutterstock

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Highlights:

CoinDCX Launches $6M Crypto Investor Protection Fund to Cover Security Breaches

Move Follows $230M Hack at Rival Exchange WazirX, Aims to Safeguard Users

CoinDCX Introduces Investor Protection Fund Following WazirX Hack

Sumit Gupta, co-founder of Indian crypto exchange CoinDCX, has announced the launch of a new investor protection fund aimed at compensating users in the event of security breaches. The fund, initially set at nearly $6 million (INR 50 crore), will be financed entirely from the company's profits. Gupta believes that if other exchanges adopted similar measures, it would enhance the overall ecosystem's security.

This move comes in response to the recent $230 million hack at WazirX, which affected about 45% of customer funds held in a single wallet. Gupta criticized WazirX's proposed response plan, emphasizing the need for more robust protections. CoinDCX’s fund represents approximately 1.8% of its $350 million in customer assets, with plans to increase this amount over time by allocating 2% of its monthly brokerage income to the fund.

Gupta clarified that the fund's establishment is a proactive measure rather than a reaction to potential vulnerabilities at CoinDCX. He highlighted the importance of customer protection, noting that CoinDCX’s funds are diversified rather than concentrated in a single wallet. The company aims to set a new standard for investor protection in the Indian crypto market.

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