WazirX, the Indian cryptocurrency exchange, has announced that it will resume INR balance withdrawals starting August 26, 2024.
The reopening comes after a month long suspension following a significant cyberattack in July, which resulted in the theft of over $230 million in crypto assets.
According to WazirX, users will be able to access only 66% of their INR balances due to ongoing disputes and investigations by law enforcement agencies.
The remaining 34% of the balances have been frozen as a precautionary measure, although the company assured users that these funds are secure and will be available once the investigations conclude.
Withdrawals will be enabled in phases, with users allowed to withdraw up to half of the 66% limit between August 26 and September 8.
The remainder of the accessible funds can be withdrawn between September 9 and September 22.
Additionally, WazirX has reduced its withdrawal fees by 60%, lowering the fee to INR 10 from the previous INR 25.
In a related development, WazirX revealed plans to file an application in the High Court of Singapore for a restructuring scheme of arrangement.
This legal move aims to allow the company to restructure its debts and ensure that recoveries for creditors are stronger than they would be through liquidation.
The company stated that this scheme is crucial to ensuring fair treatment for all users and that the outcome will be legally binding.
This announcement follows the fallout from the July cyberattack, which led WazirX to halt trading and withdrawals temporarily.
The exchange also faced backlash after proposing a socialized loss strategy that would have required customers to absorb 45% of the losses from the hack, a plan that was ultimately shelved.
Despite these issues, the company is moving forward with measures to stabilize operations and regain user trust.
