Cryptocurrency exchange WazirX announced it will allow partial withdrawals of Indian Rupee (INR) balances starting August 26, nearly a month after losing $230 million in a major cyberattack. Users will be able to access up to 66% of their funds in a phased manner.
“While the operating entity for INR-related activities, Zanmai Labs Pvt Ltd (‘Zanmai’), on the WazirX platform was not affected by the cyberattack and has sufficient INR reserves to cover all INR user balances, not all of these balances are currently available for withdrawal,” WazirX stated in a blog post.
The withdrawals will occur in two stages. Between August 26 and September 8, investors can withdraw about half of the 66% limit. The remaining balances up to the 66% cap will be available for withdrawal from September 9 to 22.
WazirX has also reduced its withdrawal fees from ₹25 to ₹10 as part of the arrangement.
However, cryptocurrency withdrawals remain suspended due to insufficient token assets available to meet liabilities after the theft, which affected approximately 45% of the exchange’s holdings.
“Due to ongoing disputes and certain investigations by various law enforcement agencies (‘LEAs’), which it is assisting with (and is not a target of), approximately 34 percent of INR balances are currently frozen and are not immediately available for withdrawal,” the company explained.
To address the situation, WazirX plans to file an application with the High Court of Singapore “to ensure the platform has the time and breathing space it needs to pursue a restructuring.”
The exchange is considering a Singapore Scheme of Arrangement to facilitate “an equitable and user-approved distribution of cryptocurrency assets.” This legal mechanism would allow WazirX to propose a debt restructuring plan aimed at delivering better outcomes for creditors compared to liquidation.
Last week, WazirX claimed that a forensic analysis found no compromise of its IT systems and blamed its wallet service provider Liminal Custody for the attack.
“While the operating entity for INR-related activities, Zanmai Labs Pvt Ltd (‘Zanmai’), on the WazirX platform was not affected by the cyberattack and has sufficient INR reserves to cover all INR user balances, not all of these balances are currently available for withdrawal,” WazirX stated in a blog post.
The withdrawals will occur in two stages. Between August 26 and September 8, investors can withdraw about half of the 66% limit. The remaining balances up to the 66% cap will be available for withdrawal from September 9 to 22.
WazirX has also reduced its withdrawal fees from ₹25 to ₹10 as part of the arrangement.
However, cryptocurrency withdrawals remain suspended due to insufficient token assets available to meet liabilities after the theft, which affected approximately 45% of the exchange’s holdings.
“Due to ongoing disputes and certain investigations by various law enforcement agencies (‘LEAs’), which it is assisting with (and is not a target of), approximately 34 percent of INR balances are currently frozen and are not immediately available for withdrawal,” the company explained.
To address the situation, WazirX plans to file an application with the High Court of Singapore “to ensure the platform has the time and breathing space it needs to pursue a restructuring.”
The exchange is considering a Singapore Scheme of Arrangement to facilitate “an equitable and user-approved distribution of cryptocurrency assets.” This legal mechanism would allow WazirX to propose a debt restructuring plan aimed at delivering better outcomes for creditors compared to liquidation.
Last week, WazirX claimed that a forensic analysis found no compromise of its IT systems and blamed its wallet service provider Liminal Custody for the attack.
