WazirX to Resume INR Withdrawals on August 26

Key takeaways:

• WazirX, an Indian crypto exchange, has announced when withdrawals will be allowed again after a hack cost investors $234 million.
• WazirX cited insufficient token assets “due to the cyberattack” and the loss of a sizable sum of ERC-20 tokens as a consequence of the theft.

WazirX, an Indian crypto exchange, has announced when withdrawals will be allowed again after a hack cost investors $234 million.

WazirX announced on August 23 that withdrawal restrictions for customer balances in Indian rupees (INR) would be gradually eased beginning on August 26. The exchange announced that its customers would be permitted to withdraw up to half of the 66% withdrawal limit from August 26 to September 8 and the remaining amount from September 9 to September 22.

WazirX cited insufficient token assets “due to the cyberattack” and the loss of a sizable sum of ERC-20 tokens as a consequence of the theft but did not specify a timeline for withdrawing crypto balances from the exchange.

On July 18, hackers gained access to almost $234 million, or about 45% of the total cash held by investors, in WazirX’s Safe Multisig wallet on Ethereum.

The exchange stated that due to ongoing investigations by different law enforcement agencies, 34% of the balances in INR were “frozen and not immediately available for withdrawal.” WazirX claimed that crypto withdrawals were still subject to legal concerns. The exchange stated:

“We want to assure all users that Zanmai is not the target of any investigations that have led to the freezing of INR balances,”

Numerous crypto exchanges received compliance letters from the Financial Intelligence Unit (FIU) of the Indian Ministry of Finance in December for allegedly engaging in unlawful activities and breaking anti-money laundering laws. When the exchange began to phase out services in India in March, OKX replied by asking its users there to terminate their accounts.

After a seven-month break, Binance, one of the top crypto exchanges in the world, has triumphantly returned to the Indian market. Following a $2.25 million deal with Indian financial authorities, Binance has made a comeback into the Indian market. In India, the Google Play Store and Apple App Store once again offer access to Binance’s mobile apps and website as of August 15.