WazirX, the cryptocurrency exchange that faced a major cyber attack nearly a month ago, announced on Friday that it will resume the withdrawal of rupee balances for its users, beginning on August 26, 2024. The withdrawals will be rolled out in phases, with users initially able to access up to two-thirds of their INR balances.
WazirX INR Withdrawal Plan Details
The phased withdrawal plan allows users to withdraw up to 50 per cent of the available 66 per cent of their INR balances between August 26 and September 8. The remaining accessible funds will be available for withdrawal from September 9 to September 22.
WazirX said that this decision follows a comprehensive review of user feedback and an internal assessment. To ease the process for users, WazirX has also announced a significant reduction in withdrawal fees by 60 per cent, lowering the fee from INR 25 to INR 10.
Despite the resumption of withdrawals, a substantial portion of INR balances, approximately 34 per cent, remains frozen due to ongoing legal disputes and investigations by law enforcement agencies. WazirX clarified that its operating entity, Zanmai Labs Pvt Ltd, has sufficient reserves to cover all user balances, but the frozen funds are currently inaccessible.
WazirX emphasised that Zanmai is not a target of the investigations that led to the freezing of these balances.
The freeze was implemented by authorities as a precautionary measure while they investigated third-party activities. The platform assured users that all INR funds are secure and will be fully available once the legal matters are resolved, though a clear timeline for this is not yet available.
Restructuring Process
In addition to INR withdrawals, the platform is addressing the impact of a recent cyberattack that compromised a significant number of ERC-20 tokens. The attack has left the platform with insufficient cryptocurrency assets to meet the liabilities owed to users.
As a result, WazirX plans to implement a restructuring process under Singapore’s Scheme of Arrangement to ensure an equitable distribution of the remaining cryptocurrency assets. Users will have the opportunity to vote on the restructuring proposal before it becomes legally binding.
WazirX will soon file an application with the High Court of Singapore to initiate this process, aiming to secure the necessary time and legal framework to proceed with the restructuring. Meanwhile, the phased INR withdrawals will continue as planned, and users can expect further updates from the platform in the coming days.
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