In a big step to back the Indian crypto community, CoinSwitch, a top Indian cryptocurrency exchange, has launched a ₹600 crore (about $70 million) recovery program called ‘CoinSwitch Cares’. The program is targeted at users of WazirX, another top Indian crypto exchange, who lost heavily because of a cyberattack in July 2024. The move reflects CoinSwitch’s efforts to strengthen trust and resilience in the Indian crypto space.

Background: The WazirX Cyberattack of 2024
WazirX suffered a catastrophic security incident on July 18, 2024, losing about $234.9 million (approximately ₹2,000 crore) worth of investor money. The attack was blamed on the infamous Lazarus Group, a North Korean hacking group famous for attacking financial institutions around the world. This hack took advantage of weaknesses in WazirX’s multisignature (multisig) wallet system, resulting in a halt to trading and withdrawals on the platform. The hack not only rattled the confidence of WazirX users but also raised wider questions about security procedures within the Indian cryptocurrency sector.

CoinSwitch’s Response: Launching the Recovery Program
Following the WazirX hack, CoinSwitch identified the urgent need to regain the confidence of impacted investors. On January 7, 2025, CoinSwitch declared the ‘CoinSwitch Cares’ initiative, committing ₹600 crore to support WazirX users in reclaiming their lost funds. As a two-year program, the objective is to offer financial assistance and coax impacted users into switching to the CoinSwitch platform, thus strengthening the overall security of India’s crypto market.

“We think rebuilding the trust of the Indian crypto users impacted by the reported cyberattack will benefit all stakeholders within the ecosystem,” said Ashish Singhal, CoinSwitch Co-founder.

Program Details: Eligibility and Benefits
Eligibility Criteria:

Affected Users: Anyone who suffered losses as a result of the WazirX cyberattack can apply for the ‘CoinSwitch Cares’ program.
Verification Process: Users need to give evidence of their losses by uploading WazirX loss statements and any other documents as per CoinSwitch’s requirements.
Benefits Provided:

Sign-Up Rewards: Qualified users are eligible to receive up to 10% of the amount they deposit on CoinSwitch, with rewards limited to ₹15,000 per user. The rewards are meant to encourage users to return to the crypto market via a safe platform.

Revenue Redistribution: CoinSwitch will aggregate the revenue from trading under this program and redistribute it in proportion to the impacted users, according to their validated losses. This way, users directly reap the rewards of the platform’s success.

Referral Bonuses: Referring other impacted WazirX users to CoinSwitch earns users extra rewards, with referral bonuses providing up to 5% of the amount deposited, subject to a limit of ₹10,000 per referral.

Implementation: Steps to Join
To join the ‘CoinSwitch Cares’ program, impacted WazirX users need to do the following:

Estimate Losses: Use the calculator on the CoinSwitch Cares portal to calculate probable rewards and recovery values.

Register and Complete KYC: Register on CoinSwitch and undergo the Know Your Customer (KYC) process to enable the account. Existing users of CoinSwitch can log in directly to join.

Initial Deposit: Start earning rewards by depositing money (INR or crypto) from any supported source into the CoinSwitch wallet.

Transfer from WazirX: After WazirX reopens withdrawals, users can transfer their remaining balance to CoinSwitch to avail maximum recovery benefits.

“Once WazirX enables withdrawals of cryptocurrencies, it will be simple to monitor the user claims which customers are bringing onto our platform. We will have assets under management and will be able to calculate rewards on top of that,” Ashish Singhal said.

Financial Support and Security Protocols
Sources of Financing:

CoinSwitch is funding the ₹600 crore recovery initiative from its cash reserves, a testament to the sound financial health of the company. CoinSwitch has till now raised more than $300 million from marquee investors, including:

Andreessen Horowitz (a16z)
Tiger Global
Peak XV Partners (previously Sequoia Capital India)
Ribbit Capital
Paradigm
Coinbase Ventures
Security Measures:

For securing user assets, CoinSwitch follows rigorous security protocols, including:

Enterprise-Grade Custody Solutions: Using cutting-edge security protocols to safeguard digital assets.
Strong Policy Engines: Putting in place extensive risk management practices to monitor and counteract potential threats.
Continuous Monitoring: Performing frequent cybersecurity evaluations to maintain platform integrity.
Industry Impact: Restoring Trust in Crypto
The ‘CoinSwitch Cares’ initiative is a landmark move to regain confidence in the Indian cryptocurrency space after the WazirX hack. By actively taking on the losses incurred by WazirX users, CoinSwitch not only supports individual investors but also becomes a trendsetter for industry accountability and user-friendly practices.

“The hour of the need is to restore confidence with the affected Indian crypto users. We’re convinced that restoring this confidence would work in the interest of all participants in the ecosystem,” stressed Ashish Singhal.

The move could prompt other exchanges to take similar steps, making India a safer and more resilient environment for cryptocurrency trading.