Following a hack on July 18, Indian cryptocurrency exchange Wazirx has expedited Phase 2 INR withdrawals. Eligible customers can now withdraw up to 66% of their INR holdings, as planned on September 9. But it won’t be possible to trade cryptocurrencies on the site again for another six months.
Wazirx Accelerates Phase 2 INR Withdrawals During Restructuring Attempts Following Hack
Through social media platform X, Indian cryptocurrency exchange Wazirx said on Tuesday that Phase 2 of INR withdrawals had begun earlier than expected. This comes after the incident on July 18th, which led to the loss of more than $230 million in cryptocurrencies. The exchange said that although consumers’ frustration with the suspension of cryptocurrency withdrawals is growing:
“Starting today, all eligible users can now withdraw up to the full 66% limit of their INR balances. Originally scheduled for 9th September, we have moved this up to provide quicker access.”
Wazirx applied for a moratorium under the Insolvency, Restructuring and Dissolution Act in Singapore’s High Court after the cyberattack in order to restructure its obligations through a plan of arrangement. The goal of this petition is to provide the creditors a 30-day grace time to rearrange these obligations.
Six Months Until Crypto Trading Begins
Wazirx provided an explanation of its reorganization process on Monday during a virtual town hall gathering. X user Budhil Vyas provided a report of the meeting and stated that instead of offering clarification, it created more questions.
He explained in detail how Wazirx restricted comments, ignored important customer queries, and advised people to email inquiries in place of receiving them at the conference. Without offering any new information, the conversation restated viewpoints that had already been expressed. Vyas explained:
“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.”
Vyas further pointed out that Wazirx provided evasive answers, failing to explain why consumers must pay legal fees. The simultaneous transfer of $6.3 million connected to the Wazirx breach to Tornado Cash raised questions because of when it happened in relation to the meeting. Users continue to worry about their money because Wazirx’s communication is still unclear overall.
WazirX’s parent firm, Zettai, is looking for backing from investors.
Zettai, the parent firm of WazirX, requested investor backing from 11 cryptocurrency exchanges that manage daily transactions from $5 million to $4 billion and have user counts ranging from 5.5 million to 100 million. Some of these businesses have been approached by the corporation to discuss collaborations and investment.
Furthermore, WazirX co-founder Nischal Shetty mentioned the exchange’s interest in looking for investors to help with its recovery and pay off its losses during Monday’s most recent town hall meeting.
Shetty explained that the six-month break will be crucial in incorporating feedback from the company’s 4.3 million creditors and will account for the complexities of their recovery plan.
Jason Kardachi, managing director of Zettai’s advising firm, Kroll, delivered a more pessimistic outlook, stating that the business would only be able to recover around 55–57% of the stolen cryptocurrency, even with investor help.
Conclusion
WazirX INR withdrawals in Phase 2 are now accessible sooner than anticipated in order to enhance the customer experience. As of right now, any individuals who are eligible to request a withdrawal can obtain up to 66% of INR quicker in their profile.
Although the platform had to push back the start date in order to give a faster turnaround, this phase was originally scheduled to begin on September 9. The company’s desire and readiness to complete the project ahead of schedule and make the service available to its consumers are also made clear by the initial implementation.
