WazirX Announces Timeline for Crypto Withdrawals Amid Restructuring Efforts
- WazirX sets a six-month timeline for crypto withdrawals post-restructuring.
- The exchange files for a moratorium under Singapore’s legal framework.
- The July cyberattack led to a significant imbalance in ERC-20 token assets.
- Users to receive a detailed affidavit via email soon.
WazirX’s Plans for Crypto Withdrawals
Indian cryptocurrency exchange WazirX has outlined a timeline for users to withdraw their crypto assets following a major cyberattack in July. In a recent announcement, WazirX, operated by Zettai, stated that users could expect withdrawals to reopen in at least six months. This will only occur once the proposed restructuring scheme, currently under review by the Singapore High Court, is approved.
The restructuring is being pursued under Singapore’s Scheme of Arrangement, a legal process allowing the company to reorganize its operations and obligations. The exchange believes this route is the quickest way to ensure that users can reclaim their assets.
Impact of the July Cyberattack
WazirX highlighted that the attack in July significantly disrupted its operations, particularly affecting its ERC-20 token balances. The theft led to a large discrepancy between the platform’s actual token reserves and the balances reflected in user accounts, which are now classified as contingent unsecured claims against Zettai.
To address these issues equitably and legally, the exchange is moving forward with the restructuring plan, which is deemed crucial for the fair distribution of the remaining crypto assets.
Communication with Users
In addition to the timeline announcement, WazirX’s founder, Nischal Shetty, took to Twitter to inform users of an upcoming email containing a 52-page affidavit. This document is expected to provide further details on the restructuring process and the next steps for affected users.
