WazirX, a popular crypto exchange based in India, recently fell victim to a cyberattack on July 18, resulting in the theft of a substantial amount of ERC-20 tokens valued at over $235 million at the time. This unfortunate event led to the platform’s decision to suspend all trading and withdrawal activities to assess the damage and formulate a recovery strategy.
After a month-long suspension of fiat currency withdrawals, WazirX announced that it would be commencing a phased resumption of withdrawals beginning on August 26. The plan allows users to access up to 66% of their Indian rupee (INR) balances in two stages. The first stage permits users to withdraw up to half of the 66% limit between August 26 and September 8, while the second phase will enable users to withdraw the remaining 50% of the limit from September 9 to September 22.
While WazirX confirmed that its INR reserves were unaffected by the cyberattack, approximately 34% of INR balances remain frozen due to ongoing investigations by law enforcement agencies. The exchange has assured users that these funds will be released once the investigations are complete, though the exact timeline remains uncertain.
In addition to the phased resumption of INR withdrawals, WazirX is pursuing a legal restructuring plan to address the deficit in crypto balances resulting from the cyberattack. The exchange has chosen to implement a Singapore Scheme of Arrangement, a legal process that allows for the proposition of a restructuring plan to users pending approval by creditors and the Singapore High Court. WazirX emphasized the importance of this scheme in ensuring a fair distribution of the remaining digital assets and plans to involve users in the decision-making process through polls and town halls.
The decision to resume INR withdrawals signifies a significant step in WazirX’s efforts to stabilize its platform and restore user confidence. The exchange is dedicated to keeping users informed throughout the restructuring process and prioritizing fair outcomes for all parties involved.
Overall, WazirX’s proactive approach in addressing the aftermath of the cyberattack through a phased withdrawal plan and legal restructuring demonstrates its commitment to transparency, accountability, and user satisfaction. By involving users in decision-making processes and prioritizing fairness, WazirX aims to emerge stronger from this challenging situation and rebuild trust within its community.
