While Wazirx Quickly Processes INR Withdrawals, Customers Must Wait Six Months to Trade Cryptocurrency

Wazirx, an Indian cryptocurrency exchange, announced on 3 September 2024 through social networking site X that Phase 2 of INR withdrawals had been released ahead of schedule. This comes after the cyberattack that occurred on July 18 and resulted in the theft of more than $230 million worth of cryptocurrencies. Even though users are becoming increasingly aggravated by the restriction placed on cryptocurrency withdrawals, the exchange claimed.

Beginning today, all users who are entitled to do so are now able to withdraw up to the absolute maximum of 66% of their INR holdings. The 9th of September was the original date that the company had planned for this, however, it has moved it up to provide faster access.

In the aftermath of the cyberattack, Wazirx submitted a request to the High Court of Singapore for a moratorium by the Insolvency, Restructuring, and Dissolution Act to restructure its liabilities through the implementation of a scheme of arrangement. This filing intends to grant a respite period of thirty days to reorganize these liabilities.

Hold Off on Crypto Trading for Six Months

On 2 September 2024, Wazirx organized a virtual town hall session to explain the process of its restructuring. According to a report of the conference that was written by X user Budhil Vyas, the meeting did not provide clarification but rather raised issues with attendees. It was described by him that Wazirx did not address the most important questions that users had during the meeting, that comments were disabled, and that users were directed to send inquiries via email instead. During the exchange, positions that had been voiced in the past were restated without any new material being provided.

When consumers were asked when they would be able to trade cryptocurrency again, they responded, "Not for at least six months." As a means of putting things right, they requested a six-month break in Singapore. People who are looking to get their money will find this to be unfavorable.

According to Vyas, Wazirx did not provide any clear explanation as to why users are required to fund legal costs, and their responses were ambiguous. During the same period, $6.3 million that was associated with the Wazirx hack was transferred to Tornado Cash, which raised concerns owing to the timing of the transfer with the meeting. In general, Wazirx's communication continues to be opaque, which leaves customers with persistent concerns regarding the finances of their accounts.

Hackers Steal $230 Million From Cryptocurrency Exchange WazirX

Hackers allegedly stole over $230 million in customer holdings, or about half of the platform’s reserves, from WazirX, one of the country’s main cryptocurrency enterprises.

StartupTalkyNitin Konde