WazirX announces INR withdrawals, provides update for crypto holders

Indian cryptocurrency exchange WazirX has announced that customers will be able to withdraw their Indian Rupee balances starting from August 26.

The WazirX team noted in its announcement on Aug. 23 that customers would not yet be able to access their cryptocurrency balances for withdrawal. This update follows the exchange’s halting of all withdrawals following the $230 million hack suffered in July.

According to WazirX, the decision to halt withdrawals and trading was made to “mitigate impact” and to assess the next steps toward resolving the situation for its customers.

The latest update addresses two of the exchange’s users’ key concerns – crypto and INR balances, which has dominated sentiment since a controversial proposal to socialize the exchange’s loss.

Crypto withdrawals? Not yet

Regarding user crypto balances, WazirX stated that it suffered significant losses during the hack. The available crypto assets are insufficient to meet user liabilities, making it impossible to resume crypto withdrawals at this time.

The exchange also feels the best outcome would be to undertake this – when possible – in an equitable manner that takes into account a “legally binding solution.”

WazirX is therefore pursuing a Singapore Scheme of Arrangement, a restructuring process under the country’s insolvency laws and regulations. The WazirX creditors will have to approve the proposal before the process becomes effective. Users will hope for a swift resolution, otherwise it could be another long wait akin to the Mt. Gox process that lasted nearly a decade.

Part of the next steps will include an application at the High Court of Singapore.

INR withdrawals to resume

While WazirX users who had crypto balances at the time of the $230 million hack will have to wait, the situation is a bit different for customers that held INR balances. The exchange wrote:

“After a careful assessment and understanding of all user feedback, we are pleased to announce that the suspension on withdrawals of INR balances will be lifted on 26 August 2024, and INR withdrawals will be enabled in phases.”

The phased withdrawal plan will allow users to withdraw half of their balances between August 26 and September 8, and up to the full limit between September 9 and 22, 2024. Additionally, WazirX will reduce the withdrawal fee by 60%, from INR 25 (approximately $0.30) to INR 10 ($0.12).