WazirX users gain access to 66% of INR balances amid aftermath of $230 million cyberattack

Indian cryptocurrency exchange WazirX has stated that it will begin gradually rolling back INR withdrawals starting August 26 after a hack on the exchange resulted in over $230 million being stolen from the exchange on July 18. The full phased recovery plan will allow users to withdraw up to 66% of their INR balance, even as cryptocurrency withdrawals remain disabled due to the effects of the attack.

📢 Important Notice About INR Withdrawals & Next Crypto Steps

The past month has been a difficult time for users of the WazirX platform due to the cyberattack on July 18, 2024 and the subsequent suspension of withdrawals and trading to limit the impact on the platform. We… photo.twitter.com/XdAr3V3TOp

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) August 23, 2024

Phased INR admission plan

WazirX explained that INR withdrawals will be available in two phases. Starting August 26, users will be able to withdraw up to fifty percent of the current limit of sixty-six percent of their INR balance. The second window of the 66% guaranteed by the law of user balances will be open from September 9 to September 22. To help users, WazirX has also reduced the withdrawal fees during this period, which were earlier INR 25, to INR 10 after reducing the fees to 60%.

“We understand the frustration caused by the suspension of withdrawals and apologize for the inconvenience,” WazirX said. “Our team has worked tirelessly to find a solution that is best for our users while ensuring the long-term stability of the platform.”

Crypto withdrawals still suspended

While withdrawals of INR are expected to continue, WazirX has clearly stated that cryptocurrency withdrawals will remain closed for the time being. The exchange blamed the heavy loss of ERC-20 tokens in the cyberattack as the main reason for the current financial troubles. It said that the remaining token assets cannot adequately meet the outstanding obligation owed to users.

To remedy this, WazirX plans to participate in a Singapore Scheme of Arrangement, a legal framework that will allow for a fair distribution of its remaining crypto assets. “This arrangement will help ensure that the distribution of the crypto assets is both legal and endorsed by its users,” WazirX said.

Looking ahead

The cyberattack on July 18 was one of the biggest cryptocurrency hacks of 2024 and had a huge impact on WazirX along with its users. The update that the exchange decided to gradually restore INR withdrawals and reduce fees made a positive impression on many users, but the suspension of cryptocurrencies is a problem.

To get the latest updates, users are advised to read the official communications from WazirX.