The Supreme Court of India dismissed a petition filed by 54 victims of the WazirX hack on April 16, 2025, seeking action against the crypto exchange and its associates.
The decision underscores the persistent regulatory ambiguity surrounding cryptocurrencies in India, leaving victims of the $235 million cyberattack without judicial recourse and highlighting the urgent need for a comprehensive crypto framework.
The WazirX hack, which occurred on July 18, 2024, saw hackers, allegedly linked to North Korea’s Lazarus Group, exploit vulnerabilities in the exchange’s multi-signature wallet, draining over $230 million in user funds.
The petitioners, represented by advocates Priyanka Prakash and Maitreyi S. Hegde, demanded a criminal investigation into WazirX, its co-founder Nischal Shetty, Binance, and custody provider Liminal, accusing them of negligence and mismanagement.
They also sought a special investigation team and an audit of WazirX’s accounts to prevent further losses.
However, Justices B.R. Gavai and Augustine Masih rejected the plea, stating that cryptocurrency regulation is a policy matter for the government, not the judiciary.
The court’s ruling has understandably sparked frustration among victims and the broader crypto community.
Posts on X reflect the sentiment, with users like @Cryptowithkhan
lamenting the ongoing challenges for Indian crypto investors, including fears of hacks and inadequate customer support.
The decision follows a pattern of judicial hesitance, as the National Consumer Disputes Redressal Commission similarly dismissed a related case in March 2025, citing the lack of clear crypto laws.
WazirX, operated by Zanmai Labs and its Singapore-based parent Zettai Pte Ltd, has faced intense scrutiny since the hack.
The exchange suspended operations and proposed a restructuring plan, approved by 93.1% of creditors in April 2025, to redistribute 85% of unstolen funds and issue recovery tokens for the rest.
Critics argue this plan absolves WazirX of full accountability, with some victims, like petitioners Sudhir Verma and Kunal Dhariwal, pursuing further legal action in the Delhi High Court.
The Supreme Court advised victims to approach regulatory bodies like the Reserve Bank of India, but without clear directives, investors face uncertainty.
The ruling exposes the precarious state of crypto in India.
Despite the Supreme Court lifting the RBI’s 2018 crypto trading ban, the clear absence of a regulatory framework leaves investors vulnerable.
The hack, one of India’s (and world’s) largest, has affected over 4.4 million users, with funds stuck for nearly 10 months.
Industry observers on X, like @jayjitbiswas, call the verdict a “wake-up call” for investors, urging caution with Indian exchanges.
As WazirX moves forward with its recovery plan, the Supreme Court’s decision shifts the onus to Indian policymakers.
The governments in India and other jurisdictions must act swiftly and responsibly to establish robust regulations to protect investors and restore confidence in India’s crypto ecosystem.