Indian cryptocurrency exchange Wazirx has accelerated Phase 2 of INR withdrawals following a cyberattack on July 18. Originally scheduled for September 9, eligible users can now withdraw up to 66% of their INR balances. However, cryptocurrency trading on the platform will not resume for another six months.

Wazirx Accelerates INR Withdrawals Amid Restructuring Efforts After Hack

Indian cryptocurrency exchange Wazirx announced on Tuesday via social media platform X that Phase 2 of INR withdrawals has been launched ahead of schedule. This comes after the July 18 hack that resulted in the theft of over $230 million in cryptocurrency. As users grew increasingly frustrated with the freeze on cryptocurrency withdrawals, the exchange stated:

Starting today, all eligible users can now withdraw up to 66% of their INR balance. Originally scheduled for September 9, we have moved it up to provide faster access.

Following the cyberattack, Wazirx filed a stay of execution application with the Singapore High Court under the Bankruptcy, Restructuring and Winding Up Act to restructure its debts through a scheme of arrangement. The application is aimed at providing a 30-day relief period to reorganize its debts.

Wait 6 months to trade cryptocurrency

Wazirx held a virtual town hall on Monday to explain its restructuring. According to a summary by X user Budhil Vyas, the meeting raised concerns rather than providing clarity. He detailed that during the meeting, Wazirx failed to address key user questions, disabled comments, and directed users to email requests for replacement. The exchange reiterated previously stated positions without providing new information. Vyas detailed:

When asked when people can trade crypto again, they replied “At least 6 months”. They asked for a 6 month pause in Singapore to fix things. This is bad news for people who want to get their money back.

Additionally, Wazirx has not clarified why users are incurring legal fees, providing vague answers, Vyas noted. At the same time, $6.3 million related to the Wazirx hack was transferred to Tornado Cash, raising suspicions due to the timing of the meeting. Overall, Wazirx’s communications remain vague, leaving users constantly concerned about their funds.

What do you think about Wazirx’s fast withdrawal process and six-month waiting period for trading cryptocurrencies? Do you think users will regain trust in the platform? Let us know in the comments below.
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