WazirX Exchange Facing Challenges in Restructuring Process

Indian cryptocurrency exchange WazirX has recently expressed concerns regarding external parties not invested in the platform attempting to prolong its restructuring process for their own gains. The exchange fears that these parties are focused on creating and sustaining “uncertainty” rather than working towards finding a resolution to the current situation.

Following a major security breach on July 18, WazirX has been dealing with significant losses exceeding $230 million. As a result of the hack, the platform had to halt withdrawals and trading activities to address the security concerns. The exchange believes that restructuring is necessary to navigate through this challenging period and considers it the most efficient and legally sound approach to tackle the issues at hand.

Restarting INR Withdrawals

In an effort to recover from the security breach and resume normal operations, WazirX announced plans to restart INR withdrawals in phases starting on Aug. 26. The platform assured users that the operating entity for INR-related activities, Zanmai Labs Pvt Ltd, was not impacted by the hack and has sufficient reserves to cover all INR balances. However, due to ongoing disputes and legal investigations, a portion of the INR balances is currently frozen.

To facilitate the return of funds to its users, WazirX has outlined a phased withdrawal process. In the initial phase, users will be allowed to withdraw half of the 66% limit by Sept. 8. Subsequently, from Sept. 9 to Sept. 22, users will have the opportunity to withdraw the remaining half of the limit. Despite these efforts, the exchange disclosed that it currently lacks adequate cryptocurrency reserves to enable seamless withdrawals at this time.

WazirX is actively exploring various avenues to recover the stolen assets, including the implementation of bounty programs and engagement with legal channels. The exchange emphasized its commitment to assisting users in reclaiming as much as possible while simultaneously seeking ways to enhance the overall value. Recognizing that the recovery process will be a gradual one, WazirX acknowledged the need for patience and persistence to achieve favorable outcomes for its users.