India-based cryptocurrency exchange WazirX has set up a timeline to reintroduce withdrawals following a hack that caused the loss of $234 million in investor funds.

In an Aug. 23 notice, WazirX said the suspension of withdrawals for user balances in Indian rupees (INR) would be lifted in phases starting on Aug. 26. Setting a withdrawal limit of 66% of users’ INR funds, the exchange said its customers would be able to remove up to half the limit from Aug. 26 to Sept. 8 and the remainder from Sept. 9 to Sept. 22.  

WazirX did not provide a timeframe for withdrawing crypto balances from the exchange, citing “insufficient token assets […] due to the cyberattack and loss of a significant balance of ERC-20 tokens as a result of the theft.” On July 18, hackers compromised roughly $234 million in WazirX’s Safe Multisig wallet on Ethereum — roughly 45% of total investor funds.

Source: WazirX

The exchange said the 34% of balances remaining in INR was “frozen and [...] not immediately available for withdrawal” as part of “certain investigations by various law enforcement agencies.” WazirX suggested there were still legal issues with crypto withdrawals.

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“We want to assure all users that Zanmai [the operating entity for INR-related activities] is not the target of any investigations that have led to the freezing of INR balances,” said the exchange. “The funds were frozen by [law enforcement agencies] as a precautionary measure while they pursue their investigations against third parties. All INR balances remain secure and will be made available for withdrawal once the respective investigations and disputes are concluded.” 

In December, the Financial Intelligence Unit of the Indian Ministry of Finance issued compliance notices to several crypto exchanges for allegedly operating illegally and violating Anti-Money Laundering regulations. OKX responded in March by requesting its India-based users close their accounts as the exchange phased out services in the country.

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