Indian cryptocurrency exchange WazirX is facing challenges as it attempts to restructure following a major security breach. The exchange has stated that external parties, not invested in the platform, may be trying to prolong the restructuring process for their own gains. These parties are creating and maintaining uncertainty rather than seeking a resolution, which complicates the situation further.
WazirX announced a comprehensive restructuring plan after the security breach on July 18, which resulted in losses exceeding $230 million. The exchange believes that restructuring is the best course of action and the most expedient and legally sound approach to address the current situation. It is also in the best interest of users who are still unable to access their funds.
Following the security breach, WazirX suspended withdrawals and trading on the platform. The exchange plans to restart INR withdrawals in phases starting on August 26. Zanmai Labs Pvt Ltd, the operating entity for INR-related activities on the platform, was not affected by the hack and has enough reserves to cover all INR balances. However, due to ongoing disputes and legal investigations, 34% of the INR balances are currently frozen.
In the first phase, which ends on September 8, users will be able to withdraw half of the 66% limit. From September 9 to September 22, the exchange will allow users to withdraw the remaining half of the 66% limit. WazirX has stated that it does not have enough cryptocurrency to enable withdrawals at this time. The exchange is still exploring avenues to recover the stolen assets, including through bounty programs and other legal channels.
WazirX emphasized that its primary goal is to assist users in recovering as much as possible while exploring ways to enhance value simultaneously. The exchange noted that these recovery efforts will take time and patience to deliver results. It is important for users to remain patient and vigilant throughout this process, as recovering from a security breach of this magnitude is a complex and time-consuming endeavor.
Cryptocurrency exchange WazirX faces significant challenges as it navigates the aftermath of a major security breach. The exchange is working diligently to restructure and recover from the breach, but external parties are complicating the process by seeking to prolong uncertainty for their own gains. It is essential for WazirX to prioritize the interests of its users and remain transparent in its restructuring efforts to restore trust and integrity in the platform.
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