Following the WazirX breach, CoinDCX has set up a Rs 50 crore fund to protect cryptocurrency investors

CoinDCX, an Indian cryptocurrency exchange, has launched a new fund called the Crypto Investors Protection Fund (CIPF), worth Rs 50 crore. This fund aims to cover users' losses in rare cases of major security issues or other significant problems.

The decision to create this fund comes after a major security breach at WazirX, another Indian crypto exchange. WazirX experienced a massive data theft, with hackers, including the North Korean Lazarus Group, stealing nearly $235 million in cryptocurrencies. 

Despite efforts to recover the stolen funds and mitigate the damage, WazirX has not yet succeeded and faced backlash from users when it initially proposed sharing the losses among them. WazirX is now seeking external financial help and working with authorities to recover some of the lost money.

Sumit Gupta, the Co-Founder of CoinDCX, emphasized that security is a top priority for the company. CoinDCX invests significantly in advanced security measures to protect its users' assets. To enhance safety, the company's assets are spread across various secure vaults.

Gupta explained that the CIPF is designed to offer extra protection in very rare situations where security breaches occur. The fund will provide a safety net for users to ensure their assets are protected.