Supreme Court’s Decision on WazirX Hack: What’s Next for Victims?

WazirX Scam: In a major ruling on April 16, 2025, the Supreme Court of India rejected a petition filed by 54 victims of the WazirX hack that stole over $230 million in July 2024. The victims had asked the court to investigate WazirX, its co-founder Nischal Shetty, and other involved parties, including Binance.

The court, however, said that India lacks clear cryptocurrency regulations, and the government, not the judiciary, should handle such issues.

So, what does this mean for the victims? Unfortunately, it means they’ll have to wait for the government to step in and create laws around crypto before they can take further action. Without clear rules, the victims have no clear legal path forward.

What Happened? A Quick Recap

The hack occurred on July 18, 2024, when attackers gained access to WazirX’s Ethereum wallet and stole over $230 million in user funds. This attack left many users in a panic, demanding action from the exchange and its partners.

After the hack, Zettai Pte Ltd, a Singapore-based company tied to WazirX, filed for insolvency to restructure its debts. Meanwhile, Binance, which provided WazirX with wallet services, denied any responsibility for the hack, stating it had no operational control over WazirX.

Also Read: How the US Crypto Stance is Reshaping Institutional Investments Globally

The Restructuring Controversy

Zettai later proposed a restructuring plan to settle WazirX’s debts, but this raised more concerns. The plan suggested redistributing crypto assets to cover liabilities, even affecting some user funds that weren’t involved in the hack. This led to another legal battle.

Sudhir Verma and Kunal Dhariwal, two victims, filed a petition in the Delhi High Court. They argued that the restructuring plan violated users’ rights, forcing them to accept terms that could risk their funds and legal claims.

Delhi High Court Steps In

On March 28, 2025, the Delhi High Court decided to get involved. The court issued a notice to the parties involved, asking them to respond within two weeks. 

The petitioners are asking the court to set up a Special Investigation Team (SIT) to properly investigate the hack and protect user rights. 

They also want to make sure the restructuring plan doesn't bypass Indian laws using Singapore’s legal system. The next hearing in the matter is scheduled for April 29, 2025.