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Indian crypto exchange Wazirx has accelerated Phase 2 of INR withdrawals after a cyberattack on July 18. Initially scheduled for Sept. 9, eligible users can now withdraw up to 66% of their INR balances. However, crypto trading on the platform will not resume for another six months.
Wazirx Expedites INR Withdrawals Amid Post-Hack Restructuring Efforts
Indian cryptocurrency exchange Wazirx announced on Tuesday via social media platform X that Phase 2 of INR withdrawals has been launched ahead of schedule. This follows the July 18 cyberattack that resulted in the theft of over $230 million in cryptocurrency. While users are increasingly frustrated over the freeze on crypto withdrawals, the exchange stated:
Starting today, all eligible users can now withdraw up to the full 66% limit of their INR balances. Originally scheduled for 9th September, we’ve moved this up to provide quicker access.
Following the cyberattack, Wazirx filed for a moratorium in Singapore’s High Court under the Insolvency, Restructuring and Dissolution Act to restructure liabilities through a scheme of arrangement. This filing is intended to provide a 30-day relief period to reorganize these liabilities.
6-Month Wait for Crypto Trading
Wazirx held a virtual town hall conference on Monday to explain its restructuring process. According to a summary of the conference by X user Budhil Vyas, the meeting raised concerns rather than providing clarity. He detailed that during the meeting, Wazirx did not address key user questions, disabled comments, and instructed users to email inquiries instead. The exchange reiterated previously stated positions without providing new information. Vyas detailed:
When asked about when people can trade crypto again, they said ‘Not for at least 6 months.’ They asked for a 6-month pause in Singapore to fix things. This is bad news for people who want their money.
Additionally, Wazirx did not clarify why users must bear legal costs, giving vague responses, Vyas noted. Concurrently, $6.3 million linked to the Wazirx hack was moved to Tornado Cash, raising suspicions due to its timing with the meeting. Overall, Wazirx’s communication remains opaque, leaving users with ongoing concerns about their funds.
What are your thoughts on Wazirx’s expedited withdrawal process and the six-month wait for crypto trading? Do you think users will regain their trust in the platform? Let us know in the comments section below.