- WazirX will resume INR withdrawals in phases starting August 26, 2024, following a $230 million hack in July.
- 34% of INR balances remain frozen due to ongoing law enforcement investigations into third-party entities.
- WazirX is initiating a Scheme of Arrangement in Singapore to equitably distribute remaining crypto assets among users.
WazirX, one of the biggest cryptocurrency exchanges in India, has declared that INR withdrawals will once again be accepted after a serious hack in July. There were $230 million worth of ERC-20 tokens lost as a result of the cyberattack.
Due to this incident, many users were impacted by the platform’s decision to halt trading and withdrawals. WazirX has now provided a phased plan to bring back fund access in an effort to allay the fears of its user community.
Phased Withdrawal Plan for INR Balances
Notably, the ban on INR withdrawals will be gradually lifted by WazirX beginning on August 26, 2024. Users may withdraw up to half of the 66% of their INR balances that are available during the first phase. This first action is scheduled to expire on September 8, 2024. After that, on September 9, 2024, the second phase starts, allowing users to withdraw the entire 66% of their INR balances.
Moreover, the exchange has made it clear that not all INR balances can currently be withdrawn, though. Law enforcement agencies have kept about 34 percent of the funds frozen because they are still looking into third-party entities. The INR reserves of WazirX are managed by Zanmai Labs; there is no connection between them and the frozen assets.
Legal Measures and Future Implications
Consequently, to tackle the issues brought about by inadequate token assets, WazirX has declared its plan to initiate a Scheme of Arrangement within the legal limits of Singapore. The company will be able to present its users with a restructuring plan thanks to this legal process. The remaining cryptocurrency assets are to be divided equally among users according to the plan.
WazirX stressed that the majority of users had approved the restructuring, which would be enforceable by law. Additionally, the exchange has pledged to uphold transparency by soliciting user feedback through town halls and polls.
Notably, WazirX intends to commence the Scheme of Arrangement by submitting an application to the Singapore High Court shortly. To give the required framework and time to execute the suggested restructuring, this legal action is crucial.
Furthermore, a 60% decrease in withdrawal fees has been implemented by the exchange, with the fee now only worth INR 10. As users regain access to their funds, this fee reduction is meant to make the withdrawal process easier for them.
