The Impact of External Parties on WazirX’s Restructuring Process

Cryptocurrency exchange WazirX recently announced a comprehensive restructuring plan after experiencing a major security breach on July 18. However, the exchange has now raised concerns about external parties attempting to prolong the restructuring process for their own benefit.

According to WazirX, these external parties are focused on creating and maintaining “uncertainty” rather than seeking a resolution to the current situation. This behavior could potentially hinder the exchange’s efforts to address the security breach and resume normal operations.

WazirX has emphasized that restructuring is the most viable course of action in response to the security breach. The exchange believes that this approach is not only expedient but also legally sound, ensuring that the interests of its users are protected.

While WazirX plans to provide more information about its restructuring efforts in the coming week, the exchange has clarified that it is not undergoing bankruptcy or liquidation proceedings. These processes would be significantly more time-consuming and may not benefit users in the long run.

WazirX has announced that it will gradually restart INR withdrawals, beginning on Aug. 26. The operating entity for INR-related activities on the platform, Zanmai Labs Pvt Ltd, remains unaffected by the security breach and has sufficient reserves to cover all INR balances.

Despite ongoing disputes and legal investigations, 34% of INR balances are currently frozen due to the security breach. WazirX plans to allow users to withdraw their funds in phases, with the first phase ending on Sept. 8 and the second phase lasting until Sept. 22. The exchange is also exploring options to recover stolen assets through bounty programs and legal channels.

WazirX remains committed to assisting its users in recovering their funds while striving to enhance overall value. The exchange acknowledges that these recovery efforts will require time and patience to yield significant results. However, it is imperative to address the impact of external parties on WazirX’s restructuring process to ensure a successful resolution to the security breach.