WazirX will Reopen Withdrawals on August 26, Months After the $235M Cyber Heist

Highlights:

• WazirX will reopen withdrawals for cyber heist-affected users on August 26.
• The trading platform revealed that users will only access 66% of withdrawable funds in two phases.
• WazirX acknowledged the hindrances that could stem from inadequate tokens for distribution, as it presents a means of circumventing the issue.

India’s exchange, WazirX, has announced plans to reopen withdrawals in three days. Notably, the announcement is coming roughly two months after the cyber heist that resulted in over $200 million in losses. Consequently, affected users will be gearing up to withdraw their Indian Rupees (INR) after months of waiting.

WazirX to Reopen Withdrawals Soon

Taking to X, WazirX has revealed updates on when users should anticipate withdrawals. Notedly, the exchange announced August 26, 2024, as the date to roll out withdrawals. However, the procedure will progress in phases, implying that users will exercise more patience.

Writing on X, the trading platform remarked, “After a careful assessment and understanding of all user feedback, we are pleased to announce that the suspension on withdrawals of INR balances will cease on August 26, 2024, and INR withdrawals will begin in phases.” 

Interestingly, the trading platform revealed that it is making the withdrawal procedures seamless by introducing discounts. Notedly, WazirX stated that it would reduce the withdrawal fees by 60%. Consequently, users will spend INR 10 instead of the usual INR 25.

Users will only Withdraw 66% of their Balances

Further describing the withdrawal details, WazirX noted that users will access incomplete balances. Citing reasons for the incomplete withdrawal, WazirX highlighted ongoing investigations by law enforcement agencies on Zanmai Labs Pvt Ltd (“Zanmai”).

For context, Zanmai is the operating entity for INR-related activities, including withdrawals. Interestingly, it was unaffected during the hack. Therefore, it would have enabled complete withdrawals, barring restrictions that accompanied the investigations.

Highlighting the schedule for the withdrawal procedures, WazirX noted that between August 28 and September 8, 2024, users will only withdraw 50% of the withdrawable 66%. From September 9 to September 22, 2024, users will access the remaining half of the initial 66%.

Meanwhile, for the remaining 34%, WazirX mentioned that users will access them once the investigations are over. “All INR balances remain secure and will be available for withdrawal once the investigations and disputes conclude. While the timeline for releasing these frozen INR balances is currently unclear, we want to reassure you that we are doing everything in our power to expedite this process for the benefit of our users,”  the exchange added.

📢 Important Announcement About INR Withdrawals and Crypto Next Steps

The last month has been a difficult time for users of the WazirX platform due to the cyberattack on 18 July 2024 and the subsequent suspension of withdrawals and trading to mitigate impact to the platform. We… pic.twitter.com/XdAr3V3TOp

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) August 23, 2024

Plans to Circumvent Insufficient Tokens for Distribution Purposes

Despite announcing withdrawal plans, WazirX admitted that the tokens for distribution are insufficient. However, it presented a means of bypassing the hindrance. According to the exchange, a Singapore Scheme of Arrangement will come in handy in facilitating the token distribution.

Clarifying the above “Scheme,” WazirX described it as an avenue for equal user treatment based on their individual preferences. Remarkably, user preferences imply that users will receive updates on every material development from which they will decide via polls.

In summary, the exchange noted that it would hasten the application filing procedures in Singapore’s High Court. An earlier judiciary involvement will ensure the platform has enough time to achieve a suitable restructuring under a Scheme of Arrangement.