Indian cryptocurrency exchange WazirX has raised concerns about external parties who are not invested in the platform attempting to prolong its restructuring process for their own gains. These parties, as per WazirX, are aiming to create and sustain “uncertainty” rather than seeking a resolution. This revelation comes in the aftermath of a significant security breach on July 18, which resulted in a loss of over $230 million and the temporary suspension of withdrawals and trading activities on the exchange.
Focus on Restructuring for the Best Outcome
WazirX has emphasized that restructuring is the most suitable course of action in the current scenario. The exchange believes that this approach is not only expedient but also legally sound. Furthermore, it is in the best interest of the platform’s users who are currently unable to access their funds. While more details regarding the restructuring plan are expected to be unveiled next week, WazirX has clarified that it is not undergoing bankruptcy or liquidation proceedings, both of which could prolong the resolution process significantly.
Resumption of INR Withdrawals in Phases
In a recent blog post, WazirX announced its decision to recommence INR withdrawals gradually, starting from August 26. The operating entity for INR-related activities on the platform, Zanmai Labs Pvt Ltd, remained unaffected by the security breach and holds adequate reserves to cover all existing INR balances. However, due to unresolved disputes and ongoing legal investigations being assisted by WazirX, 34% of the INR balances are presently frozen.
During the initial phase, spanning until September 8, users will be permitted to withdraw up to half of the 66% limit. Subsequently, from September 9 to September 22, users will have the opportunity to withdraw the remaining portion of the 66% limit. WazirX has disclosed that it currently lacks sufficient cryptocurrency reserves to facilitate withdrawals. The exchange is actively exploring various avenues, including bounty programs and legal interventions, to recover the assets that were stolen during the breach.
WazirX has reiterated its commitment to assisting users in reclaiming their assets to the maximum possible extent. Simultaneously, the exchange is focused on exploring avenues to enhance overall value for its users. It has acknowledged that the recovery process will demand both time and patience to yield significant outcomes. WazirX’s primary objective remains centered on safeguarding user interests and restoring normal operations within a structured framework.