WazirX Face Criticism After Announcing INR Withdrawal Update

Indian cryptocurrency exchange WazirX has announced its strategy to address the fallout from a major cyberattack that occurred on July 18, 2024. The plan includes a phased reopening of Indian Rupee (INR) withdrawals and a proposed restructuring of crypto assets through a Singapore Scheme of Arrangement.

WazirX Two-Pronged Approach: INR Liquidity

📢 Important Announcement About INR Withdrawals and Crypto Next Steps

The last month has been a difficult time for users of the WazirX platform due to the cyberattack on 18 July 2024 and the subsequent suspension of withdrawals and trading to mitigate impact to the platform. We… pic.twitter.com/XdAr3V3TOp

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) August 23, 2024

Starting August 26, 2024, WazirX will begin allowing users to withdraw their INR balances in stages. Initially, users can access up to 33% of their balance, with the limit increasing to 66% by September 22.

The exchange cites ongoing legal disputes and investigations as the reason for the partial freeze on withdrawals, affecting about 34% of total INR balances.

On the cryptocurrency front, WazirX faces a more complex challenge. Due to the losses of ERC-20 tokens in the cyberattack, the platform lacks sufficient assets to cover user liabilities. To address this, WazirX plans to pursue a Singapore Scheme of Arrangement, a legal mechanism that allows for debt restructuring with creditor approval.

This approach will enable users to vote on the proposed restructuring plan, ensuring a legally binding and user-approved distribution of remaining cryptocurrency assets. WazirX emphasizes that this process aims to treat all users fairly and in line with their preferences.

The exchange acknowledges the difficulties users have faced and apologizes for the delays, stating that the time was necessary to assess the situation and develop a credible plan. To ease the process for users, WazirX also announced a 60% reduction in INR withdrawal fees.

However, the announcement has received backlash from the community. The Indian crypto community even questioned the exchange as to why the users need to suffer due to an ongoing dispute.

Also Read: OKX Posts 1 Billion DOGS Prize Pool As Three Hours to List