As Bitcoin nears all-time high, WazirX investors are in pain over their locked crypto funds

Bitcoin came close to its all-time-high price of $73,577.21 [File]
| Photo Credit: REUTERS

Bitcoin (BTC), the leading cryptocurrency by market capitalisation, hit a price of around $73,544 early on October 30, coming less than $500 short of the all-time-high price of $73,750.07 that the coin hit in March this year, according to CoinMarketCap.

The leading cryptocurrency is up by 111.46% in the past one year, after starting 2024 in the $42k range.

The rise in price is a moment of excitement for crypto users across the world who are investing in a bull market and the coin’s ascent.

However, investors who used the WazirX exchange are unable to take part in this, as their crypto funds have been locked since a cyberattack against the exchange in July that led to the loss of more than $230 million.

After the cyberattack and subsequent crypto withdrawal freeze, WazirX has applied for a moratorium through the Singapore courts to protect it from legal action as it pushes for restructuring.

In the Telegram group ‘Justice for WazirX Users,’ with over 2,000 members ranging from investors to well-wishers and legal agents, many expressed their distress at being unable to access their crypto during such a crucial time.

Others hoped they would be able to recover at least 55% of their assets after the restructuring, while some were unclear as to whether a bear market or a bull market would result in better recoveries for them.

The volatile nature of crypto prices makes it especially difficult to calculate how investors should be compensated after incidents such as hacks.

WazirX has shared a tentative scheme timeline to help users understand when different parts of the restructuring proceedings will move forward. Meanwhile, the true cause of the hack is not yet confirmed as WazirX and digital custody services provider Liminal blamed each other.

“While WazirX is dedicated to progressing as quickly as possible, certain phases depend on Singapore court schedules, particularly during the holiday season,” said the company, which is still embroiled in a separate dispute regarding its business relationship with the international crypto exchange Binance.

Though the WazirX withdrawal freeze took place on July 18 this year, the effective date of restructuring – for the time being – is February 3 next year, leaving many users angry and upset at the thought of missing out on key market changes for months on end.

In the meantime, a WazirX creditor outreach townhall is scheduled for November 22.

A screenshot of the pending proceedings and their tentative dates
| Photo Credit:
WazirX