Crypto exchange CoinDCX has launched a $6 million contingency fund, named the ‘Crypto Investors Protection Fund,’ to safeguard customer assets in light of the recent $230 million hack of WazirX. This fund aims to compensate users for losses due to security breaches or other risks, providing an extra layer of protection for customers. CoinDCX plans to grow the fund by allocating 2% of its brokerage income over time and will oversee the fund with a transparent governance framework and annual reviews. The initiative follows WazirX’s significant hacking incident, which resulted in a loss of 45% of its customer assets and a backlash from users over a proposed recovery strategy. Similar contingency funds have been set up by other major exchanges in response to ongoing security threats in the cryptocurrency sector.

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