WazirX Resumes INR Withdrawals with Restrictions: What You Need to Know

After suffering a major hack in July that saw over $230 million (approximately ₹1,928 crore) stolen, Indian cryptocurrency exchange WazirX is slowly resuming its services. As of August 26, users can begin withdrawing their INR balances, but with certain restrictions.

Current Withdrawal Limits

From August 26 to September 8, users can withdraw up to 33 percent of the 66 percent INR balance limit currently accessible. Between September 9 and September 22, this limit will increase to the full 66 percent. The remaining 34 percent of funds remain frozen due to ongoing investigations related to the cyberattack.

WazirX clarified that while its INR reserves are sufficient to cover user balances, ongoing disputes and investigations by law enforcement agencies have resulted in 34 percent of the INR balances being temporarily inaccessible. The exchange has assured that once these investigations are concluded, the frozen balances will be released, though no specific timeline has been provided.

Impact on Crypto Withdrawals

Crypto withdrawals remain suspended as WazirX grapples with a shortage of ERC-20 tokens following the hack. The exchange has reported that its reserves are insufficient to meet liabilities for these tokens.

WazirX claims to have over 16 million users, many of whom have reported financial difficulties due to the suspension of services. Despite the recent announcement allowing INR withdrawals, some users are experiencing issues with accessing their funds. Reports indicate that users can withdraw a minimum of ₹100 and a maximum of ₹1 lakh per transaction, with a daily withdrawal limit of ₹5 lakh and a platform fee of ₹25 per transaction.

User Complaints

Users have taken to social media to express frustration over the continued unavailability of withdrawal options. Complaints have surfaced regarding the discrepancies between announced and actual withdrawal capabilities, with some users unable to complete transactions as expected.

Future Plans for WazirX

Looking ahead, WazirX plans to file for financial restructuring under a Scheme of Arrangement in the High Court of Singapore. This scheme is part of the Singapore Insolvency, Restructuring, and Dissolution Act (IRDA) and aims to propose a plan to creditors for restructuring debts, which could potentially provide better recovery outcomes than liquidation.

The restructuring plan will be subject to creditor approval and court sanction, with the IRDA providing a structured process and timeline for negotiations and decisions.

Changing Strategies

In a shift from its earlier approach, WazirX has abandoned its previous 55/45 split policy for token recovery. Under the old system, users with tokens classified as ‘not stolen’ were to receive 55 percent of those tokens back, while the remaining 45 percent would be converted to a USDT-equivalent token and locked. The new plan focuses on the gradual resumption of INR withdrawals and ongoing restructuring efforts.

Stay tuned for more updates as WazirX navigates its recovery process and works towards resuming full services for its users.

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