Indian Crypto Exchange WazirX Rolls Out Partial INR Withdrawals

Crypto exchange WazirX announced on Monday that it has initiated Phase 1 of INR withdrawals, allowing eligible users to withdraw up to half of the available 66% of their balances. The exchange also reduced withdrawal fees by 60%, lowering the fee from ₹25 to ₹10 to facilitate smoother transactions.

In a post on X (formerly Twitter), WazirX informed users that only 66% of their INR balances would be accessible at this stage, with half of that amount available for withdrawal during Phase 1. The exchange’s CEO, Nischal Shetty, addressed user frustrations, apologizing for the delays and explaining that extensive checks and tests were necessary before launching the withdrawal process. “We’ve heard your feedback and are looking at expediting Phase 2,” Shetty stated while cautioning that the timeline depends on various internal factors.

Apologies for the delay here. We wanted to go live in the morning itself but there were many checks and tests to be done which took longer than expected 🙏

Phase 1 of INR withdrawals is live.

We’ve heard your feedback and are looking at expediting phase 2 (no promises, depends… https://t.co/j50QRHdi9z
— Nischal (Shardeum) 🔼 (@NischalShetty) August 26, 2024

The partial release of funds has led to backlash from users, with some expressing anger over the restrictions. One user questioned why only a portion of the funds is being released and criticized the reduced fee, saying, “If you have any shame left, allow full withdrawals with zero fees.”

Shetty acknowledged these concerns in a response on X, stating, “You’re right in being angry. And we’re sorry that the cyberattack has led to lost trust.” He added that the current 66% limit is due to the remaining funds being frozen and expressed hope that law enforcement would expedite the release of the remaining balances.

The announcement follows a cyberattack last month that compromised a multisig wallet holding $230 million in crypto assets, representing 45% of WazirX’s holdings. According to the exchange, the INR-related activities managed by Zanmai Labs Pvt Ltd were unaffected by the breach and have sufficient reserves to cover user balances. However, due to ongoing legal disputes and investigations involving law enforcement agencies, 34% of INR balances remain frozen and are not immediately accessible.

In a recent blog post, WazirX explained that it is cooperating with investigations and clarified that it is not the target of these probes. The company also revealed plans to seek court approval in Singapore for a “Scheme of Arrangement” to restructure its debts and ensure fair distribution to creditors. “This step is necessary to ensure that users are treated fairly and in line with legal requirements,” the exchange noted.

Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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