WazirX, one of India’s leading cryptocurrency exchanges, has recently taken to social media to voice its frustration with external forces that it claims are deliberately hindering its recovery efforts.
This post comes after the exchange announced a comprehensive restructuring plan designed to restore financial stability and enhance the security of its users’ assets.
External interference
In the public statement on X, WazirX criticized unnamed external parties for allegedly attempting to prolong the restructuring process. The exchange contends that these entities are motivated by a desire to maintain uncertainty and complicate the resolution that WazirX has been striving to achieve since the hack.
The Indiatiming of these external interferences is particularly troubling, as WazirX is in the midst of implementing a phased plan to restore its financial operations. This plan includes reinstating INR withdrawals, which will begin on a staggered basis starting Monday, Aug. 26.
Source: WazirX India
Additionally, the exchange announced a 60% reduction in withdrawal fees, a move intended to alleviate the financial burden on its users during this challenging transition. The restructuring plan is not just a financial recovery strategy; it also emphasizes the importance of security protocols to prevent future vulnerabilities.
Legal recourse in Singapore
WazirX’s restructuring efforts are further complicated by its decision to pursue legal recourse in Singapore. The company has chosen Singapore’s jurisdiction for its legal restructuring process, opting for a Scheme of Arrangements that has received court approval.
This legal framework allows WazirX to negotiate terms that are fair and equitable for all parties affected by the hack, ensuring that the asset distribution process adheres to stringent legal standards.
WazirX suffered a major blow on July 18 when a hack targeted a multisignature wallet containing nearly half of the investor funds, approximately $234 million, making it difficult to reimburse all investors.
Following the WazirX breach, India’s Bharat Web3 Association (BWA) has redoubled its commitment to strengthening cybersecurity measures and protecting crypto industry consumers.
The Financial Intelligence Unit of India’s Ministry of Finance issued notices to several cryptocurrency exchanges in December, claiming they operated illegally and failed to comply with AML requirements.
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