CoinDCX Unveils Robust Customer Protection Fund After WazirX Heist Shakes Confidence | Urgent Company News
CoinDCX Establishes Rs 50 Crore Protection Fund Amidst Rising Concerns
Published: Aug 07, 2024 | 5:07 AM IST
In a decisive move to bolster investor confidence, CoinDCX, a prominent crypto exchange platform, has unveiled a Rs 50 crore Crypto Investors Protection Fund (CIPF). This initiative aims to compensate users for losses resulting from security breaches. This announcement follows closely on the heels of a significant cyber theft at rival exchange WazirX, which resulted in a staggering $230 million loss.
The CIPF fund will initially be constituted from CoinDCX’s cash reserves, with a commitment to augmenting it over time. Sumit Gupta, co-founder of CoinDCX, detailed that 2% of the company’s brokerage income would be added to the fund monthly, ensuring its growth.
Gupta highlighted that the corpus starting point of Rs 50 crore is directly from CoinDCX’s balance sheet. He also mentioned that the contribution rate and the fund size would be re-evaluated annually to potentially increase the contributions if deemed necessary.
“This initiative is pioneering in the Indian crypto exchange landscape,” Gupta noted, emphasizing that it reflects CoinDCX’s commitment to protecting investor funds against security breaches and other potential adversities.
However, Gupta clarified that this fund would not cover losses due to individual investor errors, such as password leaks.
The decision to establish the CIPF comes amid heightened concerns among crypto investors regarding the safety of their investments on Indian exchanges, especially after the WazirX theft. Critically addressing WazirX’s approach to the loss, Gupta had previously stated on social media platform X (formerly Twitter) that companies should absorb initial losses instead of transferring them to customers.
CoinDCX’s initiative stands as a robust step towards enhancing security and trust in the Indian crypto market.
Original Story https://www.business-standard.com/companies/news/coindcx-announces-customer-protection-fund-days-after-wazirx-heist-124080601406_1.html
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