Nearly a month after a major cyber breach WazirX on Friday restarted withdrawals of up to two-thirds of an investor’s rupee balances starting August 26.
An investor will be able to withdraw about half of the 66 per cent limit the crypto exchange has set between August 26 and September 8.
Users will be able to withdraw the remaining balances (upto the 66 per cent cap) between September 9 and 22.
“Due to ongoing disputes, and certain investigations by various law enforcement agencies, which it is assisting with (and it is not a target of such investigations), approximately 34 per cent of INR balances are currently frozen and are not immediately available for withdrawals,” the company said in a blog post.
The company has slashed its withdrawal fees from ₹25 to ₹10.
Losses due to breach
As of now, the crypto firm has said the following about the distribution of its existing assets, “We have decided to pursue a Singapore Scheme of Arrangement to facilitate an equitable and user-approved distribution of cryptocurrency assets pursuant to a Scheme. A Scheme is a necessary step to ensure that users of the platform are treated fairly and in line with user preferences so that the outcome remains legally binding on all relevant parties.“
WazirX argues that there were insufficient token assets available to meet the liabilities arising from the token balances after the cyberattack last month, which led to the theft of $230 million.
It said that it will be filing an application with the High Court of Singapore “to ensure that the platform has the time and breathing space it needs to pursue a restructuring.”
Sources at the crypto firm added that further updates on how losses will be dealt with will come later next week. Uptil now WaxirX has proposed that losses from the breach will be socialised amongst users. The cyberbreach siphoned off 45 per cent of the crypto firm’s assets.