• WazirX has faced industry and customer heat about a "withdrawal management poll" after suffering the $230 million hack earlier this month.
• The exchange has now said the poll was not "not legally binding," it was a "preliminary step to understand" customer opinions, and that they will soon launch a feedback form.
• Meanwhile, Indian news outlet The Print reported that India's Enforcement Directorate (ED) put nearly $1.1 million in seized crypto assets in a crypto wallet account with WazirX in January.

Indian cryptocurrency exchange WazirX is facing industry and customer heat for its "Withdrawal Management Programme: Opinion Poll" in the aftermath of the $230 million hack, 45% of its user funds, it suffered earlier this month.

The July 27th poll described by the exchange as a "socialized loss strategy to distribute the impact equitably among all users" asked customers to vote on two different options – access 55% of your funds without withdrawals and get first priority for when potential recovery proceeds come or access 55% of your funds with withdrawals with second priority to potential recovery proceeds.

The exchange and it's co-founder Nischal Shetty have put out fresh posts on X clarifying that the poll was "not legally binding," it was a "preliminary step to understand" customer opinions, and that they will soon launch a feedback form "to collect more ideas."

However, this came after co-founder's of at least three rival cryptocurrency exchanges in the nation and several customers criticized the move.

Giottus co-founder Arjun Vijay posted on X on Sunday saying this "is not in the best interests of the ecosystem" explaining why the poll is was "designed to force customers to choose option A."

CoinDCX co-founder Sumit Gupta, perhaps the most prominent of the lot, wrote on X to say WazirX's handling of the situation "isn't community first," "won't go down well for them," and is "also hurting the other ecosystem participants."

Unocoin co-founder Dr. Sathvik Vishwanath wrote on X that the crypto industry "is in trouble due to the event and the way the issue is getting handled is only worsening the situation."

Earlier, WazirX said "This strategy allows immediate access to a significant portion of your assets while maintaining the possibility of further recovery for those who choose to wait."

However, industry observers and customers have criticized the strategy: One observer called it " socialized loss, privatized profits ," and another questioned "why should users with non-stolen tokens be penalized?"

One customer wrote on X that this is insane, asking "Is this even legal?!?!?!" and another asked " How is this even fair? "

WazirX also approached its former partner Binance asking for its help in bailing out the customers affected by the $230 million hack, Indian news outlet Moneycontrol reported, citing an unnamed source. WazirX did not immediately comment on this report.

India's policy advocacy body for the crypto industry, the Bharat Web3 Association, declined to comment.

Meanwhile, in a corruption case involving the E-Nuggets gaming app , India's Enforcement Directorate (ED) reportedly put nearly $1.1 million in seized crypto assets in a crypto wallet account with WazirX in January, months before the July hack, Indian news outlet The Print reported .

The exchange and the ED did not respond to CoinDesk's requests for comment on the report.

Read More: WazirX Files Police Complaint After $230M Hack, Engages With India's Cyber Crimes Unit

UPDATE (July 29, 13:18 UTC): Adds details on a report that claims WazirX has asked Binance for help in the recovery process.