WazirX announces the resumption of INR withdrawals and shares an update for cryptocurrency holders.
The Indian cryptocurrency exchange WazirX has revealed that, beginning August 26, users will have the option to withdraw their balances in Indian Rupees.
In an announcement made on August 23, the WazirX team informed customers that they would not be able to withdraw their cryptocurrency balances just yet.
This update comes in the wake of the exchange's decision to suspend all withdrawals following a $230 million hack that occurred in July.
WazirX explained that the choice to pause withdrawals and trading was intended to "mitigate impact" and to evaluate the next steps for resolving the situation for its users.
The latest communication addresses two major concerns raised by the exchange's users: their cryptocurrency and INR balances, which have been a focal point of discussion since a contentious proposal to distribute the exchange's losses.
Crypto Withdrawals? Currently Unavailable.
WazirX has announced that it experienced substantial losses due to a recent hack, resulting in insufficient crypto assets to cover user liabilities. As a result, the exchange is currently unable to resume crypto withdrawals.
The platform believes that the most favorable outcome would be to address this situation in a fair manner, ideally through a “legally binding solution.”
To this end, WazirX is pursuing a Scheme of Arrangement in Singapore, a restructuring process governed by the country’s insolvency laws. This proposal must be approved by WazirX's creditors before it can take effect. Users are hoping for a prompt resolution; otherwise, they may face a prolonged wait similar to the nearly decade-long Mt. Gox saga.
Next steps will include filing an application with the High Court of Singapore.
INR withdrawals to restart
Although WazirX users with crypto balances during the $230 million hack will need to be patient, the scenario is different for those with INR balances. The exchange stated:
The phased withdrawal plan enables users to withdraw 50% of their balances from August 26 to September 8, and up to the full amount from September 9 to September 22, 2024. Furthermore, WazirX will decrease the withdrawal fee by 60%, lowering it from INR 25 (around $0.30) to INR 10 ($0.12).
Comments
alex.m
I agree exactly with Jamalkan's idea, we should do our transactions simultaneously in several different accounts for basic capital management, so that in case of such incidents, the amount of our loss can be controlled.
jamalkan
Fortunately, I withdrew most of my assets a few days ago, but I still have 1,300 dollars that cannot be withdrawn. I hope I will get what I want faster, but in the end, I consider this loss a part of risk management as someone who has been busy for years. I am dealing in the financial markets. I came to the conclusion that I will divide my assets in several different platforms so that only a small part will be damaged in case of damage.
