The Indian cryptocurrency exchange WazirX announced that it will start gradually returning INR withdrawals from August 26 after a hack resulting in over $230 million being stolen from it on July 18.
Phased INR Withdrawal Plan
WazirX explained that INR withdrawals will be available in two stages. Starting August 26, users can withdraw up to fifty percent of the current sixty-six percent limit of their INR balances. The second window of the 66% guaranteed by the law of the user’s balances will be open from September 9 to September 22. During this period, to help users, WazirX has also cut the withdrawal rates from INR 25 to INR 10.
Crypto Withdrawals Still on Hold
Although INR withdrawals are expected to continue, WazirX has clearly stated that cryptocurrency withdrawals will remain closed for now. The exchange blamed the significant loss of ERC-20 tokens in the cyberattack as the main reason for its current financial woes. It said that the remaining token assets cannot adequately meet the outstanding obligation owed to users. As a remedy, WazirX intends to engage in a Singapore Scheme of Arrangement, a legal framework that will allow a fair distribution of the remaining crypto assets.
Looking Ahead
The cyberattack on July 18 was one of the biggest cryptocurrency hacks of 2024, significantly affecting WazirX and its users. The update that the exchange decided to gradually restore INR withdrawals and reduce fees has been positively received, although the suspension of cryptocurrency withdrawals remains a concern. Users are advised to follow WazirX's official communication for the latest updates.
The cyberattack on WazirX and subsequent recovery measures highlight the importance of enhanced security and trust in the cryptocurrency sector. The exchange continues to address current issues and keep users informed of its actions.
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