Key Takeaways
- Petition by WazirX victims was dismissed by India’s Supreme Court due to a lack of regulatory framework.
- Judges advised petitioners to approach relevant regulatory bodies instead.
- WazirX customers are expected to recover less than half of their stolen funds.
India’s Supreme Court has dismissed a petition filed by victims of the $235 million WazirX hack, saying it could not intervene because the country lacks clear crypto regulations.
The plea, filed by 54 WazirX users, asked the court to investigate Nischal Shetty, the exchange’s co-founder and Binance and custody provider Liminal.
Justices BR Gavai and Augustine Masih denied the petition, citing that the matter falls under policy—not judicial—jurisdiction.
WazirX Investigation Plea Falls on Deaf Ears
The Supreme Court made it clear it is not the appropriate forum to decide cases involving cryptocurrency disputes, especially in the absence of regulatory clarity. It advised the petitioners to approach the relevant authorities instead.
“Prayers are in the policy domain. We cannot lay down the law,” said Justice BR Gavai. “We are not inclined to entertain the plea. Representation may be made to the authorities, and it may be decided in accordance with the law.”
The dismissed criminal writ suit accused WazirX and its partners of negligence and the misuse of ₹4,500 crore (~$540 million) in customer crypto funds.
Victims argued that neither the platform nor its affiliates offered transparency or accountability during the aftermath of the breach.
Fund Recovery Process Pushed to May
While legal avenues in India stall, WazirX is moving closer to completing its restructuring.
The exchange was hacked in July 2024 and has since entered a court-monitored restructuring process in Singapore. Multiple complaints have been submitted to Indian courts and the Reserve Bank of India over the past several months.
WazirX claims to have secured over 90% creditor approval for its proposed fund recovery plan.
As reported by CCN, WazirX previously stated that fund redistribution could begin within a week once court approval is obtained. However, users now report delays based on the latest WazirX blog update, with the timeline potentially slipping into May.
Co-founder Nischal Shetty responded to social media claims of delays, saying the court hearing was always scheduled for next month.
Under the proposed plan, affected users are expected to recover only 45–50% of their funds lost in the July 2024 hack.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
