The Indian Supreme Court rejected a request filed by 54 users affected by the Wazirx 2024 hack on April 16, 2025. The victims, who lost their funds in the cyberattack of 2,000 sterling books (234 million dollars), hoped for urgent repair in the matter.
However, the Judicial body Apex cited the absence of a clear regulatory framework for cryptocurrencies and rejected cases against the Directorate of Exchange, in particular the co-founder Nischal Shetty, as well as the assets in binance and the liminal guard.
The victims introduced the petition before a bench including judge Br Gavai and judge Augustine Masih, describing cases of serious negligence, mismanagement of user assets and insufficient security measures that contributed to hacking.
The Supreme Court said that it was “not inclined to entertain the advocacy” and the case was rejected on the bench. For investors, the rejection of the petition left a bad aftertaste, as for many, it was their last resort.
If the
Indian judiciary cannot act against #Wazirx quoting a “lack of laws and regulations”
Then, why are Indian cryptography users still obliged to pay 1% TDS and 30% tax on profits?
So, are we only good enough to be taxed but not protected by laws, directives or clear regulations … pic.twitter.com/pvkaqo5x6u
– Ajay Kashyap (@EverYthingajay) April 16, 2025
Indian judiciary cannot act against On July 18, 2024, the famous Lazare group, supported by North Korea, hacked Wazirx. The group has exploited the vulnerabilities of the WAZIRX multi-signature portfolio system. They created false accounts, manipulated intelligent contracts and took total control of exchange funds, ultimately exhausting all funds.
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The rejection of the petition by the Supreme Court highlights the regulatory gaps
After the hack at the beginning of 2024, the victims asked for a legal appeal and approached the High Court of Delhi, without resolution. Nine months after the hack, the Supreme Court, while rejecting the petition, said that it was not the appropriate forum to judge the case and stressed that the question is a matter of judicial jurisdiction.
In the petition, Wazirx users had demanded to build a special investigation team (SIT) including officers from the Bank of India (RBI), Securities and Exchange Board of India (SEBI), Financial Intelligence Unit (FIU), the National Investigation Agency (NIA), the Central Bureau of Investigation (CBI) and Grave (sfio) to lead a question of Wazirx for fraud (SFIO) for a question of Wazirx for fraud (All (Sfio) to carry out a problem in the field of fraud woman and All (SFIO) to lead a question of Wazire and All ITHEPHE (All Ithe associated entities.
In addition, the petition also called an independent team of financial listeners to carry out a medical-legal audit of the books, dedgers and internal files of Wazirx and to report to the Supreme Court. However, the court advised the petitioners to approach the government of the Union, RBI, SEBI and CBI for compensation.
By examining the current case, market players noted the irony of India imposing a tax of 30% on crypto gains while offering no appeal in the event of major incidents, thus putting a projector on organizations such as the RBI and the SEBI in this obvious case of regulatory difference.
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Wazirx could push the fund recovery process to May
Although legal proceedings in India concerning this case are neither here nor there, Wazirx slowly advances its restructuring efforts. The company underwent a restructuring process ordered by the court in Singapore after being hacked in 2024.
The EXCHAGEN Crypto says it has obtained more than 90% credit approval for its fund recovery program. However, investors expect to recover only 45 to 50% of the funds they lost during the cyber attack.
Wazirx had previously declared his intention to start with his fund redistribution program during the week following the approval of the court. However, the recent business blog article indicates that delays could affect the program, the users speculating that they could potentially push the chronology to May
There is a Fud saying that the distribution of Wazirx funds is delayed.
It was previously communicated that the next step after the vote is to request a sanction before the program of the program. The judicial hearing is scheduled for May 13.
We are on the right track and fully concentrated. Please ignore noise,…
– Nischal (Shardum)
(@Nischalshetty) However, by responding to the concerns of social media concerning these delays, the co-founder Nischal Shetty said that the court hearing had always been planned the following month.
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Main to remember
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The Supreme Court rejected the Wazirx Hack victim petition, citing a lack of cryptographic regulation.
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Investors expect to recover only 45 to 50% of the funds they lost during hacking.
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The Supreme Court said that the case is a matter of politics and not from the judicial court.
The lack of crypto framework in India allows victims of hazirx hacking of justice on 99Bitcoins.
