Leading Indian cryptocurrency exchange WazirX has announced the reopening of Indian Rupee (INR) withdrawals a few weeks after losing $230 million in a cyberattack.
INR Withdrawals
Users with INR balances can withdraw 66% of their assets for now, but 34% remain frozen due to ongoing disputes and investigations by law enforcement agencies. Users can withdraw half of the available 66% from August 26 to September 8, 2024. The other half would be available for withdrawal between September 9 and September 22, 2024. The exchange did not specify when or whether the remaining 34% balance would be available.
Cryptocurrency Assets Situation
Due to its operating entity Zanmai Labs holding the INR balance and being unaffected by the hack, the exchange can act with INR. However, cryptocurrency balance users are in a worse position due to the loss of most ERC-20 tokens, making it impossible to resume crypto withdrawals. The exchange said: > *"Due to the cyberattack and loss of a significant balance of ERC-20 tokens as a result of the theft, there are insufficient token assets available to meet the liabilities arising from the token balances owing to users of the platform."* Now, the exchange plans to distribute the remaining crypto assets equitably under the Singapore Scheme of Arrangement system.
Restructuring Plans in Singapore
As part of its restructuring plans, the exchange plans to apply to the High Court of Singapore to start the process. This would give it enough time and space to work on its plan. The restructuring involves agreeing on a proposal with affected customers. The exchange stated: > *"This legal process will be driven by us and our advisors. Ultimately, users will be able to vote on and approve a restructuring proposal before the Scheme is effective."* Any restructuring plan might take years, as evidenced by previous incidents like Mt. Gox, where victims only got their assets back after ten years.
Despite WazirX's promises to expedite the INR withdrawal process and fairly distribute crypto assets, many users remain dissatisfied with the current situation.
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