CoinSwitch has announced a $70 million recovery initiative aimed at supporting users affected by the $230 million hack of WazirX, one of India’s largest cryptocurrency exchanges. Through its newly unveiled program, CoinSwitch hopes to attract a share of WazirX’s user base while helping victims recover some of their losses.

The initiative, called “CoinSwitch Cares,” was launched on January 7 and promises to distribute INR 600 crores (approximately $69.9 million) over two years. However, the program doesn’t directly reimburse lost funds. Instead, it offers a range of incentives such as sign-up bonuses, referral rewards, and revenue-sharing opportunities to ease the financial burden on affected users.

Eligible participants—those who can provide verified WazirX loss statements and supporting documentation—will be able to register for the program via a dedicated portal. CoinSwitch has committed to funding the initiative entirely through its own cash reserves.

Once verified, users can access a variety of rewards. These include sign-up bonuses of up to INR 15,000 per user, distributed over two years, and referral rewards capped at INR 10,000 per user. Additionally, participants will benefit from a Revenue Redistribution program, which pools trading revenue generated by user activity within the initiative and redistributes it proportionally based on verified losses.

While rewards will accrue immediately, sign-up and referral bonuses will only begin disbursing on February 7, 2025. Revenue-sharing distributions will commence once WazirX enables withdrawals. Eligible rewards will be credited directly to users’ CoinSwitch accounts, either in Indian Rupees (INR) or cryptocurrency, depending on program guidelines.

The initiative is targeted at the estimated four million users impacted by the WazirX hack, which resulted in the loss of over $230 million in funds. CoinSwitch hopes the program will provide victims with an opportunity to “recover losses, earn rewards, and confidently re-enter the market.” The company has projected a potential recovery rate of up to 100%, based on current market conditions as of January 7, 2025.

However, the program comes with limitations. Direct crypto withdrawals are not currently supported, and users can only withdraw funds in INR. Additionally, any rewards earned will remain valid only if deposited funds stay within the CoinSwitch ecosystem.

The crypto community has had mixed reactions to the recovery fund. Some applaud CoinSwitch for its efforts to assist affected users, while others criticize the program as a marketing tactic rather than a genuine recovery initiative.

For instance, “Justice for WazirX,” a social media account advocating for victims, labeled the program a “shameless cash grab.” In contrast, Wise Advice, a crypto commentary platform, commended the initiative and called on other Indian exchanges to follow suit in addressing the needs of affected users.

The WazirX hack remains one of the most significant incidents in Indian cryptocurrency history. Once the largest exchange in the country, WazirX suffered a breach that compromised one of its hot wallets, resulting in the loss of 45% of its customer funds. Operations were subsequently halted, and the platform has since been undergoing restructuring efforts under a Scheme of Arrangement in Singapore, leaving user funds inaccessible.

CoinSwitch’s initiative marks a step toward addressing the fallout of the WazirX hack, offering affected users a pathway to recovery and a chance to reintegrate into the cryptocurrency market.