- India’s Supreme Court dismissed a plea against WazirX related to a reported ₹2000 crore hack affecting over 50 users.
- Petitioners accused WazirX, Binance, and others of negligence and fraud concerning ₹4500 crore in user funds post the July 2024 hack.
- The court’s rejection leaves 4.4 million stuck WazirX users without their last hope, sparking debate on India’s crypto regulation.
WazirX petioners faced a major setback after the Supreme Court of India reportedly dismissed their plea against the exchange’s alleged role in Rs 2000 crore hack.
According to sources, over 50 victims of the July 2024 WazirX hack had filed a criminal writ petition on April 15, accusing co-founder Nischal Shetty, Binance, and Liminal Custody of gross negligence and mismanagement of Rs 4500 crore in crypto funds. Other allegations include fraud, data manipulation, shell company misuse, and a possible linkage to the Lazarus Group. The filing also mentioned WazirX’s ownership dispute with Binance.
Besides that, the petitioners accused big industry players for their alleged role in the hack. These are the Union of India, RBI, SEBI, FIU-India, NIA, CBI, SFIO, WazirX/Zanmai Labs, Binance Holdings, and Liminal Custody. However, the verdict on April 16 dashed hopes on the exchange users and the broader crypto community who now find themselves stranded in an increasingly isolated regime.
WazirX: Court Rejection a “Wake-Up Call”
Funds of over 4.4 million Indian users remain stuck on the exchange for ten months. Affected WazirX users pinned their hope on the Supreme Court intervention as a last resort. The recent decision to reject the plea has sparked intense debate, with experts calling it a “urgent wake-up call for the entire crypto ecosystem in India.”
Some stated that the court’s refusal was not necessarily an indictment of crypto itself, but a reminder of lack of clear regulation. “The absence of any concrete Indian crypto legislation has created a policy vacuum,” wrote one user.
While other nations are advancing with MiCA (EU), SEC enforcement (US), or sandbox regulations (Singapore), India is still debating the fundamentals. Lesson: The government must recognize that silence on regulation doesn’t equal safety. A clear, robust, investor-friendly regulatory framework is essential—not just for innovation but for protection.