WazirX Resumes Limited Rupee Withdrawals After Cyberattack
WazirX, one of India’s leading cryptocurrency exchanges, recently experienced a significant setback following a cyberattack that resulted in the loss of approximately $230 million in digital assets. In response to this incident, the exchange has announced that it will begin allowing limited withdrawals of the Indian Rupee (INR) for its users after imposing a freeze on such transactions for several weeks.
Starting from Monday, users will be able to withdraw up to 66% of their INR balances in a phased approach. This phased withdrawal will occur over the next month, with specific limits set for different time frames:
- From August 26 to September 8: Users will be able to withdraw up to 50% of the total 66% limit.
- From September 9 to September 22: The remaining balance of 34% will be made available for withdrawal.
WazirX has clarified that the operating entity responsible for its rupee-related activities, Zanmai Labs, was not directly impacted by the attack. The company asserts that it possesses sufficient reserves to cover the remaining balances owed to users. However, the decision to retain 34% of the funds is attributed to ongoing investigations by law enforcement agencies into the cyberattack and the nature of the stolen assets.
The exchange has expressed regret over the inconvenience caused to its users, who have been unable to withdraw cryptocurrencies from their accounts for an extended period. This suspension of withdrawals was necessary to safeguard the platform’s overall integrity and to manage the aftermath of the exploit effectively. In a statement, WazirX emphasized the complexities associated with resuming cryptocurrency withdrawals:
“While we regret that users have not been able to make withdrawals of cryptocurrency from their account on the platform for some time, it is not possible to simply resume cryptocurrency withdrawals,” the exchange stated. “Due to the cyberattack and loss of a significant balance of ERC-20 tokens as a result of the theft, there are insufficient token assets available to meet the liabilities arising from the token balances owing to users of the platform.”
WazirX’s situation highlights the broader risks associated with cryptocurrency exchanges, particularly regarding security vulnerabilities and the potential for significant financial loss. The exchange has reiterated its commitment to enhancing security measures and restoring user trust as it navigates these challenges. In the coming weeks, users are encouraged to stay informed about updates from WazirX regarding the status of their accounts and the overall security of the platform.
As the cryptocurrency market continues to evolve, incidents like the WazirX hack serve as a reminder for users to practice caution when engaging with digital assets. It is essential for users to remain vigilant and consider utilizing additional security measures, such as two-factor authentication and withdrawal whitelists, to protect their investments.