Indian cryptocurrency exchange WazirX recently announced a comprehensive restructuring plan after experiencing a major security breach on July 18. The platform revealed that external parties not invested in the exchange may be attempting to prolong the restructuring process for their own gains. These parties are said to be creating and maintaining uncertainty rather than seeking a resolution, causing significant challenges for WazirX.
WazirX emphasized that restructuring is the best course of action in addressing its current situation, as it aims to provide a legally sound approach to the issue. The exchange reiterated that the restructuring plan is in the best interest of its users who are still unable to access their funds. While the exchange plans to release more details of its restructuring efforts in the coming week, it clarified that this is not a bankruptcy or liquidation proceeding, both of which could take years to resolve.
In a blog post, WazirX announced that it will resume INR withdrawals in phases starting on August 26. The operating entity for INR-related activities on the platform, Zanmai Labs Pvt Ltd, remains unaffected by the hack 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. The exchange outlined a phased withdrawal process to allow users to access their funds in a structured manner.
WazirX also highlighted its efforts to recover the stolen assets through various avenues, including bounty programs and legal channels. The exchange’s primary goal is to assist users in recovering as much as possible while exploring ways to enhance value. It acknowledged that these recovery efforts will require time and patience to yield results, indicating a long road ahead for both the exchange and its users.
The security breach faced by WazirX has presented significant challenges for the platform and its users. Despite external parties causing uncertainty and the need for comprehensive restructuring, the exchange is committed to resolving the issue and assisting users in recovering their funds. As WazirX navigates through this difficult period, transparency, communication, and collaboration will be essential in rebuilding trust and overcoming the aftermath of the security breach.
Leave a Reply