As a seasoned crypto investor with years of experience under my belt, I must say that the recent turn of events at WazirX has left me quite disheartened. Having invested substantial funds in the platform, I was expecting smooth operations and timely withdrawals, not this unexpected freeze on 34% of my INR balance due to “legal investigations”.
Over a month since the largest cryptocurrency heist in India, WazirX exchange announced on Friday that they are unable to process crypto withdrawals for their users and only two-thirds of their Indian Rupee (INR) balances can be withdrawn. The exchange states that the remaining one-third of INR balances have been held due to ongoing “legal inquiries”.
After several weeks of user protests over frozen accounts since the July 18 cyber attack, WazirX has issued a statement. This unexpected move was disappointing to users who had been hoping for full Indian Rupee (INR) withdrawals from the platform.
According to their earlier statement, WazirX users are required to share losses in a fair and communal way because an attack resulted in the loss of 45% of investor funds totaling Rs 2000 crores. WazirX has indicated that they currently lack sufficient crypto assets to reimburse their users for this incident.
In an official announcement, WazirX explained that because of a cyberattack, they experienced a substantial loss of ERC-20 tokens. This theft has left them with insufficient token resources to cover the debts stemming from the user accounts holding these tokens on their platform.
WazirX asserts they possess sufficient resources to ensure full Indian Rupee (INR) withdrawal transactions via their parent company, Zanmai Private Limited. Yet, approximately 34% of the INR funds will stay on hold until the ongoing investigations are fully resolved.
Additionally, WazirX has announced their intention to follow a “Singapore Scheme of Arrangement” – a legal procedure outlined by the Singapore Insolvency, Restructuring and Dissolution Act of 2018. Previously, The Crypto Times reported that user disputes between users and Zanmai would be resolved through the Singapore International Arbitration Centre (SIAC), as per WazirX’s user agreement policy.
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2024-08-23 16:05