In an effort to contain the damage from a catastrophic security hack, WazirX, India’s top cryptocurrency exchange, has revealed intentions to issue a new token called RT token to cover losses suffered by users in the July 2024 hack when more than $230 million was lost. The hack caused widespread panic in the cryptocurrency market and created deep concern over security arrangements at exchanges.
WazirX founder Nischal Shetty went to social media on February 10, 2025, to announce the company’s plan to assist affected users. In his X (formerly Twitter) post, Shetty stated that WazirX would be issuing *RT tokens* to affected users. The distribution of the RT token will be according to the value of stolen assets, and Shetty clarified that the token’s value would be directly linked to the recovery of the funds.
We will be issuing RT tokens and will utilize them to disburse any recovered funds in the future to token holders,” Shetty stated. He further informed that if users showed sufficient demand, the RT token might be made tradable on the platform. This new development comes after users complained about the recovery process of the exchange and how it intended to disburse the hacked funds.
RT Token and Future Recovery Plans
The RT tokens will act as a type of compensation for users who lost their funds in the hack. WazirX’s proposal is that as recovered money from the hack becomes available, it will be returned to the holders of these tokens. The tokens will be a placeholder for the value of the stolen funds, with their value growing as money is recovered and paid back to the exchange.
The release of RT tokens is only one aspect of WazirX’s plan to bounce back from the hack. The company also stated that its *rebalanced portfolio* would be launching on February 10, 2025, which involves changes to its recovery and compensation procedure. But before the platform can restart in full and start releasing funds, most users need to vote on the plan in a majority vote.
If users accept the plan, the disbursement of the first wave of recovered funds will be initiated within 10 business days. However, if users do not accept the plan, they will need to wait until a larger *ownership dispute* involving WazirX has been resolved before any recovery proceedings can be undertaken.
WazirX has made it clear that recovered funds will not be distributed until the issues affecting the platform have been fixed and most affected users have voted on the recovery plan.
Users Respond to the Hack and Recovery Plan Proposal
The hack has provoked disappointment and frustration among WazirX users. The users have complained about the delay in the recovery process and doubts over the security measures followed by the exchange. Some of the users lost significant amounts, with personal losses of up to $100,000 or more. The launch of RT tokens has received mixed reactions, with some users welcoming the move as a move towards the recovery of their funds, while others are not convinced that the exchange will be in a position to recover the stolen assets in full.
WazirX’s move to compensate its users with a new coin is not the first example of an exchange trying to ride out the repercussions of a huge hack. But a token as a way to symbolize recovered money is a new one that could possibly provide compensation as well as a potential channel for users to regain their money in the form of appreciation of token value. If WazirX is successful in its campaign, this might set a standard for other exchanges to follow following the scale hacks.
Cardex Exploit Steals Users’ Funds on Abstract Chain: $100,000 in Losses Reported
In yet another unsettling trend in the crypto space, Abstract Chain, an Ethereum Layer 2 network created by the firm behind Pudgy Penguins, is probing a hack that has seen users lose large sums of their holdings. The exploit, which is said to have been aimed at Cardex, a game built on Abstract, has left many users stunned after their funds were siphoned off.
On 18 February 2025, 0xBeans, an Abstract Chain developer, broke the news on social media of the breach. In an X entry, he reported that “some Abstract users” had been breached, although he made it clear that the incident was not abstract-related and specifically not due to Abstract’s just-released Abstract Global Wallets (AGW). Rather, the breach appeared to be associated with Cardex, the game based on Abstract.
“This problem appears to be contained to an app (appears to be Cardex, do not interact for now), we are trying to figure this out,” 0xBeans noted.
Users had reported losses of as much as $100,000 in Ethereum (ETH) from the exploit, and most of them insisted on refunds through Abstract’s official Discord channel. 0xBeans, however, explained that the exploit was not related to the AGW wallets themselves but was limited to the Cardex app. The Cardex vulnerability used by the attackers to drain users’ funds raised a lot of concern among the Abstract Chain community.
In turn, Abstract Chain acted already by updating the Cardex contract to remediate the vulnerability and stop subsequent attacks. 0xCygaar, a fellow member of Abstract, confirmed that users were patched against the vulnerability and that no more users would be compromised. He also clarified that users who never had any interaction with Cardex are safe.
“Cardex contract has been upgraded, so no more users will be affected by this exploit,” 0xCygaar assured shortly after the attack was made known.
Abstract Chain’s Response and Future Actions
In spite of the exploit, Abstract Chain continues to work towards its vision of introducing next-gen smart wallets to the blockchain ecosystem. The network marked the achievement of deploying more than 1 million *Abstract Global Wallets* on February 17, 2025, mere days before the exploit was discovered. The Abstract Chain team reaffirmed that the vulnerability was specific to Cardex and had nothing to do with the overall platform or its wallet service.
Following the breach, the Abstract team is busy in making sure all affected users receive the necessary assistance. The firm has indicated it is exploring measures to compensate for users who lost assets during the attack, but specifics on how this will occur are yet to be determined.
Though the breach has left users rattled, it is certain that Abstract Chain is taking the matter seriously and has acted swiftly to close the vulnerability. As the platform addresses the problem and allays users’ fears, it will be crucial to see to it that its security framework is strengthened to avoid future attacks.
Conclusion
The cryptocurrency world has had its share of security incidents, but these two cases — WazirX’s $230 million hack and the Abstract Chain exploit — underscore the continued risks for users in this virtual world. Whereas WazirX’s issuance of RT tokens is an innovative, if partially untested, means of rewarding users, Abstract Chain’s quick move to plug the Cardex bug demonstrates that platforms and exchanges have to continually tighten their security systems to safeguard users.
As both sites attempt to regain user trust and recover lost funds, these events highlight the necessity for user diligence, strong security procedures, and for cryptocurrency exchanges to have well-defined and transparent recovery processes.
