India-based cryptocurrency exchange WazirX has announced that it will resume Indian rupee (INR) withdrawals starting August 26, 2024. This comes in the wake of a recent hack that saw the firm lose $234 million in investor’s funds due to a security glitch. It released the information publicly through an official notice, specifically on August 23, regarding the phased restoration of withdrawal services.
As per the WazirX announcement, the users will be able to get 50% of the balance amount of INR in the newly set 66% limit from 26 August to 8 September. The remaining 50 percent of this limit will be allowed for withdrawal from 7th September to 22nd September. This withdrawal plan is phased as recommended in the research, to ensure that all the users of the product are given adequate time to adjust to the changes.
WazirX Cuts Withdrawal Fees by 60%, INR Withdrawals to Begin
In the blog post that followed the announcement, WazirX clarified that its operating entity under INR operations, Zanmai Labs Pvt Ltd, was not involved in the cyberattack. The company also sought to reassure users that it has adequate amounts of INR to clear all balances it has with users. However, it is sad that about 34% of these funds are still frozen mainly because of investigations by LEAs. These investigations focus on third parties, and Zanmai Labs is not involved in any of these investigations.
Intending to ease the withdrawal process, WazirX has reduced the withdrawal fees by 60% from INR 25 to INR 10. The exchange assured that all the user balances are safe and will be fully unfrozen once the investigations are finalized and the frozen funds are processed.
WazirX also unveiled its intention to seek approval to present an application in the High Court of Singapore for placing the structure under a Scheme of Arrangement. It appears that this legal action is intended to secure the appropriate time and space needed by the platform to survive difficult situations.
