Indian cryptocurrency exchange WazirX has recently faced significant challenges following a major security breach on July 18. The exchange has expressed concerns that external parties not invested in the platform may be attempting to prolong its restructuring process for their own gains. These parties are allegedly creating and maintaining “uncertainty” rather than working towards a resolution.
WazirX has emphasized that restructuring is the best course of action in addressing its current situation. The exchange believes that this approach is not only expedient but also legally sound. Additionally, the restructuring process is in the best interest of the users who are still unable to access their funds due to the security breach.
In a recent blog post, WazirX announced that it will restart withdrawals in phases, starting on Aug. 26. The operating entity for INR-related activities on the platform, Zanmai Labs Pvt Ltd, was not affected by the hack and has enough reserves to cover all INR balances. However, due to ongoing disputes and legal investigations, 34% of the INR balances are currently frozen.
Phased Withdrawal Process
During the first phase, lasting until Sept. 8, users will be able to withdraw half of the 66% limit. From Sept. 9 to Sept. 22, users will have the opportunity to withdraw the remaining half of the limit. It is worth noting that the exchange currently does not have enough cryptocurrency to enable withdrawals.
WazirX is actively exploring avenues to recover the stolen assets, including through bounty programs and other legal channels. The exchange has stated that its primary goal is to assist users in recovering as much as possible while also seeking ways to enhance value. However, these recovery efforts will require time and patience to deliver desired results.
Despite the challenges faced by WazirX in the aftermath of the security breach, the exchange is committed to addressing the situation in a transparent and responsible manner. By prioritizing the needs of its users and implementing a structured approach to recovery, WazirX aims to restore trust and confidence in its platform.