PANews reported on August 23 that the Indian cryptocurrency exchange WazirX issued an announcement on Indian rupee withdrawals and subsequent steps for cryptocurrencies, stating that due to the cyber attack on July 18, 2024, and the subsequent suspension of withdrawals and transactions to mitigate the impact on the platform, the past month has been a difficult period for users of the WazirX platform. In the past few weeks, the WazirX team has developed a plan with its partners to address two major user issues: cryptocurrency balances and Indian rupee balances.
With respect to cryptocurrency balances, the token assets currently available on the platform are insufficient to repay the debts incurred by platform users due to token balances. It has been decided to implement a Singapore Scheme of Arrangement to facilitate a fair and user-approved distribution of cryptocurrency assets in accordance with the plan, and end users will be able to vote and approve the restructuring proposal before the plan comes into effect. With respect to Indian Rupee (INR) balances, the moratorium on INR balance withdrawals will be lifted on August 26, 2024, and INR withdrawals will be enabled in phases, in addition to reducing withdrawal fees by 60% - from INR 25 to INR 10.
The next step for WazirX is to file an application with the Singapore High Court to ensure that the platform has enough time and breathing space to restructure according to the arrangement plan. At the same time, INR withdrawals will be opened in stages. The announcement pointed out that the Singapore arrangement plan is a corporate rescue and restructuring mechanism stipulated in the Singapore regulatory framework, the Bankruptcy, Restructuring and Dissolution Act. Through the arrangement plan, the company can propose to creditors to restructure debts and provide creditors with stronger recovery than liquidation (which is subject to creditor approval and court approval).
Earlier news revealed that WazirX lost more than $230 million in a hacker attack in July.
