WazirX, the Indian cryptocurrency exchange, announced the partial lifting of its suspension on INR withdrawals, starting August 26, allowing users to withdraw up to 66% of their balances. This phased approach is part of the platform’s efforts to restore user confidence after a cyberattack that compromised its multisig wallet, resulting in a $230 million loss. To address the aftermath, WazirX plans to pursue a Singapore scheme of arrangement to ensure an equitable distribution of remaining assets. This user-driven process will involve reduced withdrawal fees and a legally binding restructuring plan, subject to user approval.

WazirX to Partially Lift INR Withdrawal Suspension

Phased Withdrawal Plan Implemented
WazirX has announced the partial lifting of its suspension on INR withdrawals, which had been in place due to recent security concerns. Starting August 26, users will be able to withdraw 66% of their INR balances. The withdrawal process will be carried out in two phases: from August 26 to September 8, users can withdraw up to half of the 66% limit, and from September 9 to September 22, they will be able to withdraw the full 66% limit.

Reduced Withdrawal Fees to Ease Access

Lower Fees for Better User Experience
In a bid to facilitate smoother withdrawals, WazirX has announced a significant reduction in withdrawal fees. The fees will be slashed by 60%, dropping from Rs 25 to Rs 10, making it more economical for users to access their funds during this critical period.

Addressing Cryptocurrency Withdrawals

Pursuing a Singapore Scheme of Arrangement
WazirX is exploring a Singapore scheme of arrangement to manage cryptocurrency withdrawals. This legal framework is designed to ensure an equitable and user-approved distribution of cryptocurrency assets, following a breach that compromised the platform’s multisig wallet and led to substantial losses. The scheme is aimed at providing a fair resolution in alignment with user preferences and legal requirements.

Impact of the Cyberattack

Multisig Wallet Breach and Asset Shortfall
The recent cyberattack on WazirX’s multisig wallet resulted in the theft of ERC-20 tokens, leading to a loss of approximately $230 million. This significant breach has created a shortfall in the platform’s token assets, leaving WazirX unable to meet its liabilities to users. The exchange emphasized that the complex nature of the attack means that any resolution will have both supporters and detractors among users.

Ensuring a Legally Binding and User-Approved Solution

User Participation in Restructuring Process
WazirX is committed to a transparent and user-inclusive approach to resolving the crisis. The proposed scheme of arrangement will require user approval, ensuring that the final restructuring plan reflects user preferences. The exchange will keep users informed through regular updates, polls, and town halls, allowing them to voice their opinions and vote on the restructuring proposal before it becomes legally binding.