Market News

Supreme Court's Ruling Casts Shadow Over Crypto Recovery Efforts in India

In a recent ruling, the Supreme Court of India dealt a significant blow to crypto investors by dismissing a plea related to the massive ₹2,000 crore hack of the WazirX exchange.

This decision comes as a setback for 54 users who had hoped the court would take urgent action to recover their lost funds.

The court stated that it was not the appropriate authority to address cryptocurrency-related issues and advised the petitioners to approach government bodies instead.

This ruling underscores an ongoing legal uncertainty in India's cryptocurrency landscape, particularly in the wake of the WazirX hack that occurred in July 2024.

Affected investors have already navigated numerous legal avenues, including local courts and the Delhi High Court, but have found no relief thus far.

Many believe that the management at WazirX, particularly co-founder Nischal Shetty, may have mishandled funds, with some estimates suggesting losses may approach ₹4,500 crore.

Adding to the complexity, a dispute between WazirX and Binance over ownership continues to loom over the case.

The Supreme Court bench, including Justice B.R. Gavai and Justice Augustine Masih, ruled that cryptocurrency issues fall under government policy jurisdiction, not judicial discretion.

The petitioners had sought a special investigation team to examine WazirX and requested a full financial audit, but the court did not endorse these demands.

As victims await clarity, the silence from regulatory bodies raises concerns about the adequacy of India's legal framework to address large-scale crypto frauds such as this.