Indian cryptocurrency exchange, WazirX, has been facing challenges in its restructuring process following a major security breach on July 18th. The exchange has revealed that external parties not invested in the platform may be attempting to prolong the restructuring process for their own gains. These parties are allegedly creating and maintaining uncertainty rather than working towards a resolution, which has further complicated the situation for WazirX.
Restructuring Plan and User Concerns
WazirX announced a comprehensive restructuring plan in response to the security breach, which resulted in losses of over $230 million. The exchange stated that restructuring is the most expedient and legally sound approach to address its current situation. However, users are still unable to access their funds, and the uncertainty surrounding the process has added to their concerns.
In a blog post, WazirX announced that it will restart INR withdrawals in phases starting on August 26th. The operating entity for INR-related activities on the platform, Zanmai Labs Pvt Ltd, was not affected by the hack and has enough reserves to cover all INR balances. However, due to ongoing disputes and legal investigations, 34% of the INR balances are currently frozen.
WazirX also mentioned that it does not have enough cryptocurrency to enable withdrawals at this time. The exchange is exploring avenues to recover the stolen assets, including through bounty programs and other legal channels. However, these recovery efforts will take time and patience to deliver results, as stated by WazirX in their recent post.
The challenges faced by WazirX in its restructuring process highlight the complexities involved in recovering from a major security breach. External parties attempting to prolong the process, user concerns about accessing their funds, and the ongoing efforts to recover stolen assets are all significant obstacles for the exchange. WazirX will need to navigate these challenges carefully to ensure a successful restructuring and regain the trust of its users.
