In Short:
WazirX has resumed withdrawals, allowing investors to access up to 66% of their rupee balances starting August 26. Due to ongoing disputes and investigations, 34% of INR balances are currently frozen. The company plans to pursue a Scheme of Arrangement in Singapore for fair asset distribution after a cyber breach resulted in $230 million in losses. Updates on managing these losses are expected soon.
WazirX Resumes Withdrawals Amid Cyber Breach Fallout
In a much-anticipated move, WazirX announced it will restart withdrawals for investors, allowing them to access up to two-thirds of their rupee balances beginning August 26. This development comes nearly a month after a significant cyber breach rattled the crypto exchange.
Withdrawal Schedule
From August 26 until September 8, users will be able to withdraw approximately 50% of the imposed withdrawal limit of 66%. Following that, the remaining balances can be accessed between September 9 and 22.
Current Withdrawal Limitations
In a blog post, WazirX clarified, “Due to ongoing disputes and investigations by various law enforcement agencies—which we are assisting with, although we are not the target—approximately 34% of INR balances are currently frozen and cannot be withdrawn immediately.”
Reduced Withdrawal Fees
To ease the burden on its users, the company has also reduced its withdrawal fee from ₹25 to ₹10.
Tackling Losses from the Breach
The aftermath of the cyber attack has raised concerns about how losses will be distributed. The crypto firm stated, “We have decided to pursue a Singapore Scheme of Arrangement to facilitate an equitable and user-approved distribution of cryptocurrency assets.” This scheme is designed to ensure that users are treated fairly and that the outcomes are legally binding for all parties involved.
Following the cyber attack, which saw a staggering theft of $230 million, WazirX noted that they faced challenges in meeting the liabilities stemming from token balances due to insufficient available token assets.
Looking Ahead
To navigate through this turmoil, the company plans to file an application with the High Court of Singapore, intending to buy time for a thorough restructuring of operations.
According to sources within the firm, further details regarding how they will address the losses from the breach will be shared next week. So far, WazirX has suggested that these losses could be shared among users, as the breach accounted for a massive 45% of the firm’s total assets.
