More than 35 days after the biggest crypto hacking incident in India, WazirX exchange released a statement on Friday claiming that they cannot facilitate crypto withdrawals for users and only 66% INR balance can be withdrawn. The exchange has claimed that remaining 34% INR balance has been frozen due to “legal investigations”.
The statement of WazirX comes after weeks of ongoing protests by users whose funds were suspended since July 18 when the cyber attack occurred. The development comes as rude shock for users who were expecting 100% INR withdrawals from the exchange.
As the exchange claimed earlier, the users of WazirX have to now share losses in a “socialistic” and equitable manner due to the loss of 45% investor funds amounting to Rs 2000 crores due to the hack. WazirX claimed that they don’t have sufficient crypto funds to compensate their users for now.
In an official statement, WazirX said, “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 has claimed that they have enough funds to facilitate 100% INR withdrawals through Zanmai private limited- its parent company. However, the 34% INR funds will remain frozen until investigations are completed.
Furthermore, WazirX has claimed that they will pursue a “Singapore Scheme of Arrangement” which is a legal process under the Singapore Insolvency, Restructuring and Dissolution Act (2018). The Crypto Times had initially reported that as per the user agreement policy of WazirX, any legal dispute arising between users and Zanmai will be settled in Singapore International Arbitration Centre (SIAC).
Also Read: Here’s Why WazirX Keeps Delaying Withdrawal Of Investor Funds
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