The Impact of External Parties on WazirX’s Restructuring Process

Indian cryptocurrency exchange WazirX recently stated that external parties not invested in the platform might attempt to prolong its restructuring process for their own benefit. These parties are said to be more focused on creating and maintaining “uncertainty” rather than actively seeking a resolution to the current situation. This revelation sheds light on the complexity of the challenges faced by WazirX in the aftermath of a major security breach on July 18.

WazirX firmly believes that restructuring is the most appropriate course of action in response to the security breach. The exchange has emphasized that this is not only the most expedient approach but also a legally sound one. Moreover, it is in the best interest of the platform’s users who are currently unable to access their funds. By opting for restructuring, WazirX aims to address its current predicament effectively and efficiently.

In a recent blog post, WazirX announced its plans to restart INR withdrawals in phases from August 26 onwards. The operating entity for INR-related activities on the platform, Zanmai Labs Pvt Ltd, remains unaffected by the security breach and has sufficient reserves to cover all INR balances. However, due to ongoing disputes and legal investigations, a portion of the INR balances is currently frozen.

During the initial phase, which concludes on September 8, users will be able to withdraw half of the 66% limit. Subsequently, from September 9 to September 22, users can withdraw the remaining half of the balance. It is worth noting that WazirX has acknowledged a shortage of cryptocurrency to facilitate withdrawals at this time. The exchange is actively exploring various avenues to recover the stolen assets, including bounty programs and legal means.

WazirX has underscored its commitment to assisting users in recovering their funds as much as possible. The exchange recognizes that these recovery endeavors will require time and patience to yield favorable outcomes. Despite the challenges posed by external parties seeking to prolong the restructuring process, WazirX remains focused on enhancing value for its users and ensuring the security and integrity of the platform.