WazirX Outlines Roadmap: INR Withdrawals Set to Resume August 26

Indian crypto exchange WazirX unveiled its intentions to take on the prevailing worries related to cryptocurrency and INR withdrawals after a cyberattack on 18th July 2024. The event hugely disrupted the platform’s operations, mandating a temporary freeze in withdrawal and traders’ activities as WazirX works on gaining situational awareness and recovery strategies.

The cyberattack exposed a shortfall of ERC-20 tokens crucial for the resumption of cryptocurrency withdrawals which WazirX is addressing by the Singapore Scheme of Arrangement. This legal framework is aimed at ensuring that the distribution of cryptocurrency assets is fair and user-approved.

Users will have their vote on the restructuring plan, which, if approved, will be binding. Thus, their interests will be protected in the final resolution.

📢 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

In the interim, WazirX has made progress in resolving issues with INR balances. After careful evaluation, the company announced that INR withdrawals will resume on August 26, 2024. These withdrawals will occur in phases, with users initially able to withdraw up to approximately 66% of their INR balance.

Phased Withdrawal Process and Fee Reductions by WazirX

This phased approach will begin with the capability to withdraw half of the 66% limit from August 26 to September 8, 2024, and then the full limit from September 9 to September 22, 2024. To facilitate this, withdrawal fees will be reduced by 60%, from INR 25 to INR 10.

Despite the availability of INR reserves, about 34% of INR balances are currently frozen due to ongoing legal investigations and disputes involving third parties. This measure is precautionary and not directly related to Zanmai Labs Pvt Ltd, the entity responsible for INR transactions on the platform. WazirX has reassured users that these funds are secure and that efforts are underway to expedite their release.

The next moves is to file an application with the High Court of Singapore so as to give Wazirx the required time and support in executing their scheme of arrangement. Meanwhile, users will receive updates on the process and will be able to take part in polls as well as town halls for them to express their opinions regarding the restructuring plan.

Related Reading | Russia Eyes Dual Crypto Exchanges and New Stablecoin Linked to RMB: Report