Indian cryptocurrency exchange WazirX is facing challenges in its restructuring process, as external parties not invested in the platform are attempting to prolong the process for their own gains. The exchange has highlighted that these parties are creating uncertainty and hindering the resolution process, rather than working towards a solution.
Following a major security breach on July 18, WazirX announced a comprehensive restructuring plan to address the situation. The exchange emphasized that restructuring is the most expedient and legally sound approach to dealing with the aftermath of the hack, which led to losses exceeding $230 million and the suspension of withdrawals and trading on the platform.
In a blog post, WazirX revealed that it will restart INR withdrawals in phases, starting on Aug. 26. The operating entity for INR-related activities on the platform, Zanmai Labs Pvt Ltd, remained unaffected by the hack and has sufficient reserves to cover all INR balances. However, due to ongoing disputes and legal investigations, 34% of INR balances are currently frozen.
The exchange disclosed that it does not have enough cryptocurrency to enable withdrawals and is exploring various avenues to recover the stolen assets, including bounty programs and legal channels. WazirX emphasized that the recovery efforts will take time and patience to yield results, as the exchange navigates through complex legal procedures and disputes.
WazirX reiterated its commitment to assisting users in recovering their funds and enhancing value during the restructuring process. The exchange assured users that the restructuring plan is not a bankruptcy or liquidation proceeding, which would prolong the resolution process for years. Users can expect more details on the restructuring efforts in the coming weeks.
WazirX is facing challenges in its restructuring process due to external interference and ongoing legal investigations. Despite these obstacles, the exchange remains committed to assisting users in recovering their funds and navigating through the aftermath of the security breach. With a focus on transparency and accountability, WazirX aims to overcome these challenges and emerge stronger from the restructuring process.
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