Indian crypto exchange WazirX is set to resume rupee (INR) withdrawals after a month-long suspension due to a cyberattack. The platform will allow users to withdraw up to 66% of their INR balances in phases starting Aug. 26.
As per a statement made on Aug. 24, WazirX will begin the process of enabling INR withdrawals in two phases. From Aug. 26 to Sept. 8, users can withdraw up to 66% of the limit which is the maximum 66% available. This will be started on Sept. 9 and will end on Sept. 22 when the whole 66% will be available. The exchange has also lowered the withdrawal fee by 60% to INR 10.
WazirX asserts to have adequate INR reserves, however, around 34% of user balances remain frozen because of the law enforcement agencies investigations which are still ongoing. The exchange clearly stated that it was not the object of these inquiries.
The exchange is applying to the Singapore Scheme of Arrangement for the holders of cryptocurrency balances to allow the remaining assets to be distributed equitably and approved by users. This follows the theft of a “significant balance” of ERC-20 tokens in the Jul. 18 cyberattack.
WazirX pursues Singapore Scheme of Arrangement
WazirX is targeting its creditors to come up with a restructuring plan under the Scheme of Arrangement, which is covered in the Singapore Insolvency, Restructuring, and Dissolution Act. Users are given the chance to vote on the proposal before it is turned to the court.
The exchange quite rightly pointed out the necessity to follow a legal process to guarantee that users get treated fairly, given that there are different opinions on what could potentially happen. The exchange says it will be applying for the Singapore High Court to extend the timeline for the restructuring.
This case shows us that crypto exchanges are still having trouble securing user funds and fixing regulatory problems. WazirX’s strategy of withdrawing funds in phases and then working with the legal authorities on the restructuring plan can be a model for other platforms going through similar problems in the future.
Related | Soneium: Sony and Startale’s pioneering move into Web3
