WazirX, India’s cryptocurrency exchange, to allow partial rupee withdrawals starting August 26. The platform faces ongoing legal disputes and fallout from a $230 million cyberattack.
India’s leading cryptocurrency exchange, WazirX, has announced the resumption of partial rupee withdrawals, nearly a month after a devastating cyberattack compromised its platform. Beginning August 26, investors will be able to withdraw up to two-thirds of their rupee balances in a phased manner, according to a statement released by the company on Friday.
The platform, which has been grappling with the aftermath of the breach that resulted in the theft of $230 million, will allow investors to withdraw half of the 66 percent withdrawal limit between August 26 and September 8. The remaining balances, up to the 66 percent cap, will be available for withdrawal from September 9 to September 22.
In a blog post addressing the situation, WazirX explained, “Due to ongoing disputes and certain investigations by various law enforcement agencies, which it is assisting with (and it is not a target of such investigations), approximately 34 percent of rupee balances are currently frozen and are not immediately available for withdrawals.” The company has also reduced its withdrawal fees from ₹25 to ₹10 as part of its efforts to manage the crisis.
The exchange is now exploring a legal route to manage the distribution of its existing assets. WazirX stated, “We have decided to pursue a Singapore Scheme of Arrangement to facilitate an equitable and user-approved distribution of cryptocurrency assets pursuant to a scheme. A scheme is a necessary step to ensure that users of the platform are treated fairly and in line with user preferences so that the outcome remains legally binding on all relevant parties.”
Dealing with the Aftermath
WazirX has revealed that it currently lacks sufficient token assets to meet the liabilities resulting from the token balances affected by last month’s cyberattack. The firm plans to file an application with the High Court of Singapore to secure the necessary time and legal protection to pursue a restructuring.
The crypto exchange has remained tight-lipped about specific details regarding how the losses will be managed, with insiders indicating that further updates will be provided next week. However, WazirX has suggested that the losses from the breach, which siphoned off 45 percent of the company’s assets, may be socialized among users—a move that could further strain investor confidence in the platform.
As WazirX navigates these turbulent waters, the resumption of partial rupee withdrawals marks a critical step in the company’s efforts to stabilize its operations and regain the trust of its user base. With ongoing legal disputes and investigations adding to the complexity of the situation, the cryptocurrency community will be closely watching how WazirX addresses the challenges that lie ahead.
