In a recent press release, India-based cryptocurrency exchange WazirX announced its plans to gradually resume fiat currency withdrawals following a month-long suspension due to a cyberattack. The hack, which took place on July 18, resulted in the theft of a substantial amount of ERC-20 tokens valued at over $235 million at the time. This incident forced the exchange to halt all trading and withdrawal activities while it evaluated the extent of the damage and devised a recovery strategy.
The phased withdrawal plan introduced by WazirX will enable users to reclaim up to 66% of their Indian rupee (INR) balances in two stages. The initial stage, scheduled to take place between Aug. 26 and Sept. 8, will permit users to withdraw up to half of the 66% limit of their INR balances. The subsequent phase, spanning from Sept. 9 to Sept. 22, will give users access to the remaining 50% of the limit.
While WazirX affirmed that its INR reserves remained untouched by the cyberattack, approximately 34% of INR balances are still frozen due to ongoing investigations by law enforcement agencies. The exchange has assured users that the remaining funds will be released once the investigations reach a conclusion, although a definitive timeline for this process is yet to be established.
In addition to reinstating INR withdrawals, WazirX is embarking on a legal restructuring initiative to address the deficit in crypto holdings resulting from the cyberattack. The exchange has chosen to implement a Singapore Scheme of Arrangement, a legal mechanism that allows it to propose a restructuring plan to users, pending approval from creditors and the Singapore High Court. By opting for this approach, WazirX aims to ensure a fair distribution of the remaining digital assets. Users will be actively engaged in the decision-making process through surveys and public meetings to gather their input.
The decision to recommence INR withdrawals signifies a pivotal moment in WazirX’s journey towards stabilizing its platform and revitalizing user trust. The exchange has committed to transparency throughout the restructuring process and to prioritizing equitable outcomes for all stakeholders involved. By taking these proactive measures, WazirX is demonstrating its dedication to overcoming the challenges posed by the cyberattack and emerging stronger from the ordeal.