Indian cryptocurrency exchange WazirX has announced details on when users will be able to withdraw their crypto. Additionally, the exchange has filed for a moratorium in Singapore.
In its recent announcement, WazirX disclosed the details of when its users can expect to withdraw the cryptocurrency they lost in the platform hack. Zettai, the firm that runs the Indian exchange, is seeking a restructuring under the Singapore Scheme of Arrangement.
WazirX states that withdrawal might take at least 6 months
WazirX stated that once the restructural and proposal scheme has been approved by the Singapore High Court, the exchange will reopen crypto withdrawals as per the scheme. The exchange expects that this process can take a minimum of six months and believes it to be the fastest way to enable withdrawals.
In one of the FAQs on their announcement, the exchange answered why they are unable to re-open the withdrawals now. WazirX pointed out that the cyberattack in July witnessed the theft of a large amount of ERC-20 tokens.
“This has caused the token assets of the platform to be significantly out of balance from user token balances shown on the WazirX platform, which represent contingent unsecured claims against Zettai,” WazirX said.
The exchange also highlighted that a scheme is crucial to ensuring a legal and equitable approach for crypto distribution. WazirX founder Nischal Shetty also tweeted about the announcement, asking users to be aware of something more important that will soon arrive in their mail.
WazirX to send email to users with a 52-page affidavit
Our latest announcement blog is live, and it includes FAQs that we hope will answer some of your most pressing questions.
But there's something even more important:
We’re reaching out directly to WazirX users with an email that includes a 52-page affidavit I’ve personally… https://t.co/CqIpJsUJKX
— Nischal (Shardeum) 🔼 (@NischalShetty) August 28, 2024
Nischal tweeted that the exchange is reaching out directly to its users with an email including a 52-page affidavit that he personally filed. “This document lays bare the situation we’re facing and the steps we’re taking to protect our community,” Nischal said.
One of the key takeaways from the exchange’s recent announcement was its moratorium application with the High Court of Singapore. The moratorium will aid the exchange with enough time to restructure and present a way to facilitate crypto withdrawal and recovery for its users.
However, it is unclear how the exchange’s users will respond to the 6-month timeline it proposes for reopening withdrawals.
