WazirX to resume phased INR withdrawals, fees reduced by 60%

• WazirX will resume INR withdrawals in phases starting August 26, 2024.
• Users can withdraw up to 66% of INR balances, with fees reduced by 60%.
• Crypto withdrawals remain suspended as WazirX implements a Singapore Scheme.

Indian cryptocurrency exchange WazirX has announced a phased resumption of Indian Rupee (INR) withdrawals starting August 26, 2024, following a major cyberattack in July that led to a substantial loss of funds.

The hack, which resulted in over $230 million being stolen, prompted the exchange to halt all withdrawals and trading to mitigate the impact and assess the situation.

Crypto withdrawals remain suspended

In a recent update, WazirX revealed that while cryptocurrency withdrawals will remain suspended, INR withdrawals will begin in stages.

Users will be able to withdraw up to 66% of their INR balances, with the process unfolding in two phases.

Between August 26 and September 8, users can withdraw up to 50% of their INR balances. From September 9 to September 22, they will be able to access the full 66% limit.

The exchange has also announced a reduction in withdrawal fees by 60%, from INR 25 to INR 10, to ease the financial burden on its users during this challenging period.

WazirX pursuing a Singapore Scheme of Arrangement

The decision to halt cryptocurrency withdrawals stems from the significant loss of ERC-20 tokens in the cyberattack, leaving WazirX with insufficient assets to meet user liabilities. To address this, the exchange has said that it will pursue a Singapore Scheme of Arrangement, a legal restructuring process aimed at ensuring a fair distribution of the remaining assets.

In the announcement issued on August 23, WazirX stated:

“We will shortly be filing an application in the High Court of Singapore to ensure that the platform has the time and breathing space it needs to pursue a restructuring under a Scheme of Arrangement.”

The proposal, which must be approved by WazirX creditors and the High Court of Singapore, is intended to facilitate an equitable resolution for all stakeholders involved.

While INR withdrawals will soon resume, users with cryptocurrency holdings will need to await further developments as WazirX works towards a comprehensive solution. The phased INR withdrawal plan marks a critical step in the exchange’s recovery process, offering some relief to affected users.