Amidst the aftermath of a staggering $230 million hack, which compromised 45% of its user funds, Indian cryptocurrency exchange WazirX finds itself under intense scrutiny. The exchange’s “Withdrawal Management Programme: Opinion Poll” has incited ire among customers and industry stakeholders.

On July 27th, WazirX introduced the poll, touting it as a “socialized loss strategy” intended to distribute the financial impact equitably among all users. The poll presented two options: access to 55% of funds without withdrawal privileges with first priority for any potential recovery proceeds, or access to 55% of funds with withdrawal rights but with second priority for recovery.

Co-founder Nischal Shetty and the exchange posted on X, stressing that the poll was “not legally binding” and merely a preliminary step to gauge user sentiments. They also announced an upcoming feedback form to gather more comprehensive ideas.

Read more: WazirX Hacked for $230 Million, North Korea Suspected

However, this initiative was met with sharp criticism from co-founders of rival exchanges and numerous users. Arjun Vijay, co-founder of Giottus, voiced on X that the poll was “not in the best interests of the ecosystem,” accusing it of coercing users into choosing the first option. CoinDCX’s co-founder Sumit Gupta echoed these sentiments, arguing that WazirX’s approach “isn’t community first” and would tarnish the broader crypto ecosystem. Similarly, Unocoin’s co-founder Dr. Sathvik Vishwanath lamented that the mishandling of the situation was exacerbating the industry’s troubles.

Previously, WazirX had stated that their strategy “allows immediate access to a significant portion of your assets while maintaining the possibility of further recovery for those who choose to wait.” Despite this, both industry experts and users lambasted the approach. One observer criticized it as “socialized loss, privatized profits,” while another questioned why users with unaffected tokens should suffer.

Outrage among users was palpable. One user on X exclaimed, “Is this even legal?!?!?!” while another queried, “How is this even fair?”

Adding to the turmoil, Indian news outlet Moneycontrol reported that WazirX sought assistance from its former partner Binance to aid affected customers, though WazirX did not comment on this report.

In another layer of complexity, India’s Enforcement Directorate (ED) reportedly deposited nearly $1.1 million in seized crypto assets into a WazirX account in January, months before the July hack, as part of a corruption case involving the E-Nuggets gaming app. Both the exchange and the ED declined to comment on this development.

India’s policy advocacy body for the crypto industry, the Bharat Web3 Association, also chose not to comment on the unfolding situation.