Indian cryptocurrency exchange WazirX is currently facing challenges as external parties not invested in the platform are trying to prolong its restructuring process for their own gains. The exchange revealed that these parties are intentionally creating and maintaining uncertainty in order to hinder the resolution of the situation caused by a major security breach on July 18.
Following the security breach that resulted in losses of over $230 million and the suspension of withdrawals and trading on the platform, WazirX announced a comprehensive restructuring plan. The exchange emphasized that restructuring is the most expedient and legally sound approach to address the current situation. It is also in the best interest of its users, who are still unable to access their funds.
WazirX informed users that it will restart INR withdrawals in phases starting on Aug. 26. The operating entity for INR-related activities, Zanmai Labs Pvt Ltd, was not affected by the hack and has reserves to cover all INR balances. However, due to ongoing disputes and legal investigations, 34% of the INR balances are currently frozen. In the first phase, users will be able to withdraw half of the 66% limit, with the remaining half becoming available in the second phase.
WazirX stated that it does not have enough cryptocurrency to enable withdrawals at the moment but is exploring options to recover the stolen assets. The exchange mentioned using bounty programs and other legal channels to retrieve the assets. The primary goal of WazirX is to assist users in recovering as much as possible while seeking ways to enhance the value of the platform.
The exchange acknowledged that the recovery efforts will take time and patience to yield results. The process of recovering stolen assets and resolving legal disputes is complex and requires a diligent approach. Despite the difficulties faced by WazirX, the exchange remains committed to supporting its users and working towards a resolution that benefits all stakeholders.
WazirX is navigating through challenging times following the security breach and subsequent restructuring efforts. However, the exchange is focused on addressing the issues at hand, assisting users in recovering their funds, and exploring avenues to enhance the platform’s value in the long term.
