- The Supreme Court dismissed a request from users who were victims of the WazirX hack.
- It stated there are no specific crypto laws to work on the issue.
- The hack occurred in July 2024, with $230 million being stolen.
India’s leading crypto exchange, WazirX, was hacked on July 18, 2024. Hackers stole over $230 million from its Ethereum wallet. Most users felt uncertain and let down. Subsequently, on April 16, 2025, the Supreme Court of India dismissed a petition by 54 victims of the hack. They had requested the court to inquire about WazirX, its co founder Nischal Shetty, Binance, and custody provider Liminal.
The court, which was presided over by Justices B.R. Gavai and Augustine Masih, stated India doesn’t have precise cryptocurrency guidelines, and such matters should be addressed by the government, not the judiciary.
This implies WazirX hack victims cannot take legal action easily until the government creates proper crypto laws. Currently, they have no clear way to recover their lost money.
The WazirX Hack Explained
Singapore based company Zettai Pte Ltd, which has been associated with WazirX, initiated insolvency on August 27, 2024, to restructure debts. Their plan to restructure debts caused disagreement, as it included the use of some user funds, even those not affected by the hack.
This did not go down well with users who complained about its unfairness. Two of the victims, Sudhir Verma and Kunal Dhariwal, filed a case in the Delhi High Court citing that the restructuring infringes on their rights and jeopardizes their legal claims.
Delhi High Court Steps Up
On March 28, 2025, the Delhi High Court sent notices to WazirX and others concerned, requesting a two week response.
The petitioners seek a Special Investigation Team inquiry into the WazirX hack and compliance with Indian laws, not only Singapore’s, in the restructuring plan. The next hearing date is April 29, 2025.
Expert View on Crypto Safety
Binance, which had offered wallet services to WazirX, stated it did not control WazirX’s operations and was not liable for the WazirX hack. In a blog post, Binance explained that it had only provided wallet infrastructure and was not at fault.
On the other hand, on September 6, 2024, the hacker transferred 7,200 ETH, valued at $17.3 million, via Tornado Cash to conceal the funds.
FXStreet interviewed Arjun Vijay, the CEO of the Giottus crypto platform from India, states that the problem with the WazirX hack wasn’t the hack itself, but how WazirX handled the Consequences, particularly the restructuring plan. Vijay states that the Supreme Court decision won’t have an impact on other exchanges but could influence the government into regulating crypto regulations at an early time.
Vijay said exchanges must store most funds in insured cold storage and use multiple wallets for safety. He noted that WazirX’s issue came from problems with Safe Wallet configuration, a mistake also seen in other hacks like Bybit’s.
Vijay further added that the WazirX hack will not necessarily push users to international platforms since international exchanges also get hacked. He added that Indian platforms with good track records are secure since users can take legel action in India if necessary.
The WazirX hack perfectly indicates the impossibility of managing crypto issues in the absence of adequate laws. Following the Supreme Court rejection of the victims’ petition, most are left helpless, hoping for the government to act.
But the Delhi High Court case offers a slight hope. The incident highlights the need for tighter security and clear cut regulations in India’s crypto market.
Also Read: Will WazirX refund $234M to their Investors that the Case is dismissed?
