WazirX Users to Access 66% of INR Balances Amid $230M Cyber Attack Aftermath

The post WazirX Users to Access 66% of INR Balances Amid $230M Cyber Attack Aftermath appeared first on Coinpedia Fintech News

The Indian cryptocurrency exchange WazirX has stated that it will start gradually returning INR withdrawals from August 26 after a hack on the exchange resulted in over $230 million being stolen from it on July 18. The complete phased recovery plan will permit user withdrawals of up to 66% of their INR balances, even as cryptocurrency withdrawals remain disabled due to the effects of the attack.

Phased INR Withdrawal Plan

WazirX explained that INR withdrawals will be available in two stages. Starting August 26, users can withdraw up to fifty per cent of the current sixty-six per cent limit of their INR balances. The second window of the 66% guaranteed by the law of user’s balances will be open starting from September 9 till September 22. During this period, to help users, WazirX has also cut the withdrawal rates, which were earlier INR 25 now, to INR 10 after bringing down the rates to 60%.

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

Crypto Withdrawals are Still on Hold

Although withdrawals on INR are expected to continue, WazirX has come out clearly stating that cryptocurrency withdrawals will remain closed for a while now. The exchange blamed the gross loss of ERC-20 tokens in the cyberattack as the main reason for its current financial woes.  it said that the remaining token assets cannot adequately meet the outstanding obligation owed to users.

As a remedy to this, WazirX intends to engage in a Singapore Scheme of Arrangement which is a legal framework that will allow a fair distribution of the remaining crypto assets. “This Scheme will help in ensuring that the distribution of the cryptocurrency assets is both legal and endorsed by the users,” WazirX said.

Looking ahead

The cyberattack on July 18 was one of the biggest cryptocurrency hacks of the year 2024 and affected WazirX significantly, along with its users. The update that the exchange decided to restore INR withdrawals gradually and reduce the fees impressed many users positively, still, the suspension of cryptocurrencies is a problem.

To get the latest updates, users are advised to go through WazirX’s official communication as the days unfold.