WazirX, one of the prominent Indian cryptocurrency exchanges, has encountered obstacles from external parties in its efforts to restructure following a major security breach. The exchange has informed its users that these external parties, who are not invested in the platform, are attempting to prolong the restructuring process for their own gains. Despite facing challenges from these parties, WazirX remains committed to implementing a comprehensive restructuring plan to address the aftermath of the security breach that occurred on July 18, resulting in significant losses and the suspension of withdrawals and trading on the platform.
Restructuring in the Best Interest of Users
WazirX has emphasized that restructuring is essential not only for the sustainability of the platform but also for the best interest of its users. The exchange has stated that restructuring is the most expedient and legally sound approach to address the current situation and ensure the recovery of funds for users who are still unable to access their balances. It is important to note that the restructuring process is not a bankruptcy or liquidation proceeding, as both of these courses of action would prolong the resolution of the issue for years to come.
External Parties Creating Uncertainty
In a recent post, WazirX expressed concerns about external parties attempting to create and maintain “uncertainty” around the restructuring process rather than working towards a resolution. These parties, who do not have a stake in the platform, are seeking to benefit from the situation by prolonging the restructuring efforts. Despite these challenges, WazirX remains focused on moving forward with its restructuring plan and ensuring the security and stability of the platform for its users.
INR Withdrawals to Resume in Phases
To address the concerns of its users, WazirX has announced that it will restart INR withdrawals in two phases, starting on August 26. The exchange has stated that the operating entity responsible for INR-related activities, Zanmai Labs Pvt Ltd, was not affected by the security breach and has sufficient reserves to cover all INR balances. However, due to ongoing disputes and legal investigations, 34% of the INR balances are currently frozen.
In the first phase of withdrawals, which will conclude on September 8, users will be able to withdraw half of the 66% limit imposed on their INR balances. Subsequently, from September 9 to September 22, users will have the opportunity to withdraw the remaining half of the 66% limit. It is important to note that the exchange has clarified that it does not have enough cryptocurrency reserves to enable withdrawals at this time.
Recovery Efforts in Progress
Despite the challenges faced by WazirX, the exchange is actively pursuing avenues to recover the stolen assets through bounty programs and other legal channels. In a recent statement, WazirX reiterated its commitment to assisting users in recovering as much as possible while exploring opportunities to enhance value for all stakeholders. The exchange acknowledged that the recovery process will require time and patience to yield results, but it remains dedicated to pursuing all available options to restore funds to affected users.
Conclusion
In conclusion, WazirX continues to navigate the complexities of its restructuring process in the aftermath of a significant security breach. Despite facing obstacles from external parties seeking to prolong the resolution of the situation, the exchange remains focused on implementing a comprehensive restructuring plan that prioritizes the interests of its users. By resuming INR withdrawals in phases and actively pursuing recovery efforts, WazirX is taking proactive steps to address the aftermath of the security breach and restore confidence in its platform.
