WazirX, one of India’s largest crypto exchanges, recently announced it will enable customers to transfer INR in part nearly a month after a $230 million security breach. As per this news release on August 23rd, customers can access up to 66% of their account balance from September 26 onward. This step will go a long way in enhancing the image of the exchange in the eyes of the users as they continue with the process of trying to make their victims’ lost monies and assets available to them after they were defrauded through a hack.
Also Read: WazirX Resumes Operations After Maintenance, INR Withdrawals Still Pending
Reduced Withdrawal Fees and Frozen INR Balances
In a bid to ease the withdrawal process, WazirX has reduced the withdrawal fee by 60%, bringing it down from ₹25 to ₹10. This reduction ensures that the organization makes it easier for its users during this challenging period as many industries struggle with the economic downturn. Still, in response to these comments, WazirX has stated that it holds enough INR to cover all users’ funds, but 34% of those INR balances are currently frozen and inaccessible.
Users can withdraw up to half the 66% of their INR balances between August 26 and September 8. The remaining portion of the 66% will be accessible from September 9 to 22. This structured withdrawal process is designed to contain the situation while allowing customers to get their money back.
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WazirX’s Restructuring Strategy in Response to the Hack
WazirX has also announced plans to apply to the High Court of Singapore to secure the necessary time to pursue a restructuring under a Scheme of Arrangement. It constitutes a legal tactic that could help to achieve fair and user-friendly distribution of crypto assets. The fact that the exchange has emphasized restructuring shows the commitment towards eradicating the problems arising from the hack and recreating the organization.
The security hack on July 18, which resulted in the loss of $230 million in several cryptocurrencies, including Ethereum (ETH), Shiba Inu (SHIB), and Polygon (MATIC), was tied to the notorious Lazarus Group. This is one of the largest cryptocurrency attacks in Indian history, underlining the industry’s continued security issues.
WazirX’s efforts to permit partial withdrawals, lower fees, and explore legal reorganization demonstrate its dedication to overcoming the situation and restoring user confidence. The exchange’s actions in the following weeks will be critical to establishing its future in the quickly changing cryptocurrency world.
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.