Cryptocurrency exchange WazirX has announced a phased resumption of Indian rupee (INR) withdrawals
Date: 2024-08-26 Author: Henry Casey Categories: BUSINESS
The attack, which resulted in the theft of over $230 million, resulted in the suspension of cryptocurrency and INR transactions on the platform. The exchange has suspended all withdrawals and trading to minimize the damage and develop a recovery plan.
In response to the incident, WazirX has decided to implement the Singapore Resolution Scheme, which involves a fair distribution of the remaining assets based on user approval. This legal solution is intended to ensure regulatory compliance and user participation in the distribution process.
The exchange emphasized that the significant loss of ERC-20 token balances prevents the exchange from fully fulfilling its cryptocurrency obligations to customers. To ensure fairness, WazirX plans to use this resolution scheme, which will allow users to vote and approve the proposed restructuring measures.
The lifting of restrictions on INR withdrawals will begin on August 26 and will take place in two stages. In the first phase, from August 26 to September 8, users will be able to withdraw up to half of the available limit (33% of their balance). In the second phase, from September 9 to September 22, users will be able to withdraw up to 66% of their INR balances.
WazirX has also reduced withdrawal fees by 60%, reducing the cost from Rs 25 to Rs 10, to make the withdrawal process easier during this difficult period.
On July 18, WazirX suffered a major security breach that resulted in the theft of crypto assets worth $234.9 million. The breach was first discovered by Web3 security firm Cyvers, which noticed suspicious transactions from the Safe Multisig Ethereum wallet.
Following the attack, WazirX took immediate action, including securing its remaining assets and temporarily suspending crypto and INR withdrawals. The exchange is continuing to investigate the incident and will provide updates as the situation evolves. WazirX also plans to tighten security measures and publish a list of new wallets once the asset migration is complete.
In the midst of these efforts, the hacker converted about $150 million in altcoins to Ether, likely to prevent the funds from being frozen or blacklisted. WazirX also conducted maintenance on August 16, during which all trades made after the withdrawal halt on July 18 were reversed.
