Indian cryptocurrency exchange WazirX said that outside parties who have no investment in the exchange may try to prolong the restructuring process in order to gain profits. In a post on X, the exchange said that these parties intend to create and maintain “uncertainty” rather than find a solution.
The statement comes after WazirX announced a comprehensive restructuring plan following a massive security breach on July 18. The hack resulted in a total loss of over $230 million and led to the suspension of withdrawals and trading on the platform.
Restructuring is in users' best interest
WazirX said the restructuring was the best course of action and the “quickest and most legally sound approach” to address the current situation, and that it was also in the best interest of users who are still unable to access their funds.
The exchange plans to announce details of its restructuring plan next week but reminded users that it is not a bankruptcy or liquidation proceeding, both of which can take years to resolve.
INR withdrawals to resume in a phased manner
WazirX announced in a blog post on Friday that it will gradually resume Indian rupee withdrawals from August 26.
According to WazirX, Zanmai Labs Pvt Ltd, which operates INR-related activities on the platform, was not affected by the hack and has sufficient reserves to cover all INR balances, however, 34% of INR balances are currently frozen due to an ongoing dispute and legal investigation that WazirX is supporting.
In the first phase, until 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 other half of the 66% limit.
The exchange also said that it does not currently have enough cryptocurrency to enable withdrawals.
WazirX said it is still exploring avenues to recover the stolen assets, including bounty programs and other legal options. In today's post it wrote:
“Our main goal is to help our users recover as best we can while also looking for ways to add value.”
The exchange noted that these recovery efforts will take time and patience to bear fruit.
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