Indian cryptocurrency exchange WazirX is facing unforeseen challenges as external parties not invested in the platform may attempt to prolong its restructuring process for their own gains. The exchange has recently announced a comprehensive restructuring plan following a major security breach on July 18, which resulted in losses exceeding $230 million.
WazirX stated in a post that these external parties aim to create and maintain “uncertainty” rather than seeking a resolution to the current situation. This poses a significant obstacle to the exchange’s efforts to address the security breach and resume normal operations for its users.
The exchange emphasized that restructuring is the most appropriate course of action in this scenario, as it provides a legally sound approach to resolving the issues at hand. Furthermore, WazirX clarified that the restructuring process is not a bankruptcy or liquidation proceeding, which could potentially prolong the resolution for years.
WazirX outlined a timeline for the recovery and resumption of its services, including the restart of INR withdrawals in phases starting on Aug. 26. The exchange assured users that the operating entity for INR-related activities on the platform was not affected by the security breach and has sufficient reserves to cover all INR balances.
Despite the reassurances regarding INR withdrawals, WazirX acknowledged challenges in enabling cryptocurrency withdrawals at this time. The exchange cited ongoing disputes and legal investigations as contributing factors to the frozen INR balances and the limitation on withdrawals for users.
WazirX mentioned that it is exploring various avenues to recover the stolen assets, including the implementation of bounty programs and other legal channels. The exchange reiterated its commitment to assisting users in recovering their funds while striving to enhance the overall value of the platform.
WazirX faces significant challenges in the aftermath of the security breach, with external parties potentially hindering its restructuring process. Despite these obstacles, the exchange remains dedicated to resolving the situation efficiently and transparently for the benefit of its users.
