Cryptocurrency exchange Wazir X announced that it will allow partial withdrawals of Indian rupee (INR) balances starting August 26, following a major cyberattack that resulted in a loss of $230 million.
Users will be able to access up to 66% of their INR funds in a phased manner, with withdrawals happening in two stages. The first phase allows withdrawals of approximately half of the 66% limit between August 26 and September 8, while the remaining balance will be available from September 9 to September 22. As part of this agreement, WazirX has reduced its withdrawal fees from ₹25 to ₹10.
While INR-related operations of Zanmai Labs Pvt Ltd, the entity responsible for handling these activities on the WazirX platform, were not affected by the cyberattack and have sufficient reserves to cover all user balances, not all balances are currently available for withdrawal. This is due to ongoing disputes and investigations by various law enforcement agencies, which have resulted in approximately 34% of INR balances being frozen.
Cryptocurrency withdrawals remain suspended as the exchange lacks sufficient token assets to meet its obligations following the theft, which affected 45% of its holdings.
In response to the crisis, WazirX plans to file an application with the High Court of Singapore to seek protection and carry out a restructuring. The exchange is considering a Singapore Plan of Arrangement to facilitate a fair and user-approved distribution of cryptocurrency assets, with the aim of delivering better outcomes for creditors compared to liquidation.
WazirX also blamed the attack on its wallet service provider, Liminal Custody, although it said a forensic analysis found no compromise of its own IT systems.
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