WazirX Exchange Hack Update: INR Withdrawals to be Opened in Phases

Key Points:

• Starting August 26, 2024, WazirX will lift the suspension on Indian rupee withdrawals in stages and reduce withdrawal fees by 60%.
• Due to insufficient assets to cover user debts, WazirX will implement a restructuring plan under Singapore law.
• The WazirX exchange hack occurred in July, with suspicions pointing to the North Korean hacker group Lazarus.

On August 23, Indian cryptocurrency exchange WazirX announced the removal of the suspension on Indian rupee INR withdrawals, stating steps for the handling of crypto balances.

Read more: WazirX Cyber Attack Sparks Major Police Investigation!

WazirX Will Resume INR Withdrawals and Lower Fees After Cyberattack

The suspension was enacted after the WazirX exchange hack on 18 July 2024, where the withdrawal and transaction of crypto were suspended as a precautionary measure. This has caused huge problems for the users of WazirX, with the crypto exchange platform reporting losses of over US$230 million.

Recovery plans have been underway at WazirX with its partners to recover from losses caused by the attack; this was in relation to both cryptocurrency and INR balances. Regarding cryptocurrency balances, WazirX confessed that present token assets are not enough to pay users’ debts.

It will introduce a “Singapore Scheme of Arrangement” that will undertake the restructuring process and ensure fair distribution of cryptocurrency assets. The users can vote for the reorganization plan before it gets finalized.

On the INR balances, WazirX announced that it would allow staged withdrawals starting on August 26, 2024. The platform is also said to support such with a 60% reduction in withdrawal fees—from 25 Indian rupees to 10 Indian rupees.

WazirX Exchange Hack Leaves Exchange Struggling

WazirX will apply to the High Court of Singapore for confirmation of the plan under the Bankruptcy, Restructuring, and Dissolution Act, which provides a statutory framework for corporate rescue and debt restructuring. Such an approach will yield a better recovery for creditors than liquidation.

Reports claimed that the WazirX exchange hack may be from the North Korean hacker group known as Lazarus. WazirX has also announced a $23 million reward for information regarding the cybercriminals’ identity.