WazirX says external parties are attempting to prolong its restructuring efforts WazirX says external parties are attempting to prolong its restructuring efforts
The exchange will allow users to withdraw up to 66% of their INR balances in two phases starting Aug 26.
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Updated: Aug. 25, 2024 at 5:39 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Indian cryptocurrency exchange WazirX said external parties not invested in the platform may try to prolong its restructuring process for their gains. In a post on X, the exchange said these parties intend to create and maintain “uncertainty” rather than find a resolution.
The statement comes after WazirX announced a comprehensive restructuring plan following a major security breach on July 18. The hack led to losses totaling over $230 million as well as the suspension of withdrawals and trading on the platform.
Restructuring is in the best interest of users
WazirX said that restructuring is the best course of action and also the “most expedient and legally sound approach” to address its current situation. It is also in the best interest of its users, who are still unable to access their funds.
While the exchange is planning to release more details of its restructuring efforts next week, it reminded users that it is not a bankruptcy or liquidation proceeding — both of which courses would take years to resolve.
INR withdrawals to restart in phases
In a blog post on Friday, WazirX announced that it will restart INR withdrawals in phases starting on Aug. 26.
According to WazirX, the operating entity for INR-related activities on the platform, Zanmai Labs Pvt Ltd, was not affected by the hack and has enough reserves to cover all INR balances. However, due to ongoing disputes and legal investigations WazirX is helping with, 34% of the INR balances are currently frozen.
In the first phase, ending on Sept. 8, users will be able to withdraw half of the 66% limit. From Sept. 9 to Sept. 22, the exchange will allow users to withdraw the remaining half of the 66% limit.
The exchange also stated that it does not have enough cryptocurrency to enable withdrawals at this time.
Recovery efforts are still underway
According to WazirX, it is still exploring avenues to recover the stolen assets, including through bounty programs and other legal channels. In today’s post, it wrote:
“Our primary goal is to assist our users in recovering as much as possible while simultaneously exploring ways to enhance value.”
The exchange noted that these recovery efforts will take time and patience to deliver results.
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Monika Ghosh
In 2020, Monika immersed herself in crypto, maintaining skepticism yet firmly believing blockchain could address key issues like financial disparity and transparency. A book-lover, she's also a passionate food enthusiast.
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WazirX
WazirX is an India-based cryptocurrency exchange with an advanced trading interface and features to Buy, Sell & Trade cryptocurrencies.
