WazirX Opens INR Withdrawals Following $230 Million Hack

WazirX Allows Rupee Withdrawal Amid Recovery from $230M Hack

WazirX, a cryptocurrency exchange, has announced that it will begin allowing partial withdrawals of Indian Rupee (INR) balances starting on August 26, following a cyberattack that resulted in the loss of $230 million. Users will have access to up to 66% of their funds, with withdrawals being phased in over time.

According to WazirX, Zanmai Labs Pvt Ltd, the entity responsible for INR-related activities on the platform, was unaffected by the cyberattack and holds enough INR reserves to cover all user balances. However, not all of these balances are currently accessible for withdrawal.

The phased withdrawal process will be conducted in two stages. Between August 26 and September 8, users can withdraw approximately half of the 66% limit. The remaining funds up to the 66% cap will be available for withdrawal between September 9 and 22

As part of this arrangement, WazirX has also lowered its withdrawal fees from ₹25 to ₹10. However, cryptocurrency withdrawals are still suspended due to a shortage of token assets needed to cover liabilities after the cyberattack, which impacted around 45% of the exchange's holdings.

WazirX has clarified that approximately 34% of INR balances are currently frozen and cannot be withdrawn immediately due to ongoing disputes and investigations by various law enforcement agencies. To address this situation, WazirX plans to seek legal relief through the High Court of Singapore.

The exchange is considering a Singapore Scheme of Arrangement to enable a fair and user-approved distribution of cryptocurrency assets. This legal approach would allow WazirX to propose a debt restructuring plan that could offer better outcomes for creditors compared to liquidation.

WazirX recently conducted a forensic analysis, concluding that its IT systems were not compromised during the attack and placing the blame on its wallet service provider, Liminal Custody.

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