Supreme Court rejects petitions that exceed 2,000 crore crypto hacks

A major blow to Indian crypto investors, the Supreme Court rejected a petition filed by 54 users of Wazirx Exchange. These users wanted urgent action after losing funds in a cyber attack of 2,000 crores. However, the court said it was not the right authority to deal with the matter and advised instead to reach out to the federal government and financial regulators.

How did this start?

In July 2024, Wajirux suffered from a huge cyber hack. Approximately 2,000 crores reportedly disappeared from users’ wallets there. Since then, the affected investors have tried every legal route to get justice. They first approached the district court and Delhi High Court, but nothing came. The Supreme Court was considered their last hope, but it has also been closed.

Many users believe in Wazirx’s management team, including co-founder Nischal Shetty Nishikal Shetty Nischal Shetty is the founder of India’s largest and highly trusted crypto exchange platform called Wazirx. He is an entrepreneur with a passion for technology, blockchain, cryptography and innovation. Founded Wazirx in 2018, it was built with a team of enthusiastic blockchain fans and hardcore traders, and was tasked with involving all Indians in the Blooming Blockchain Revolution. He has now also served as a committer for Chardumu since February 2022. In 2010, Nischal became the founder of CrowdFire, a Mumbai-based software development company. Through Cloud Fire, he helps individuals easily manage social media profiles around multiple platforms. Nischal Shetty has launched and led the Software Executive Career Life Holding at 31 Infotech, which develops Virtual Solutions for Java and related technologies. Meanwhile, in January 2009 he founded TWI5. This is a one-stop place to discover all the best Twitter applications and attract thousands of visitors every day. Apart from this, he praises sharing his views on technology, development and innovation. Nischal Shetty has been honored for several awards and recognition, including the Forbes 30 Under 30 and the inspiring CEO awards by ET. EntrepreneurDeveloper/Programmerchief executive officerauthor They were either careless or involved in financial errors. It is estimated that some people will bring the actual damage closer to £4,500 crules. In addition to the confusion, the ongoing conflict between Wazirx and Binance is a conflict over those who actually own and control the exchange.

What did the Supreme Court say?

The Supreme Court bench, consisting of Justices Br Gavai and Augustine Masih, has determined that it is not a proper forum to determine issues relating to cryptocurrency. As code falls under government policy, the court said petitioners should approach the Union of India and other institutions such as RBI, SEBI and CBI.

The court has allowed victims to knock on the doors of these authorities, but has not revised the new hearing date and has not provided clear instructions as to what should happen next.

What did the victims want?

Users had requested a special research team, including major financial and research institutes, to investigate Wazirx and its operations. They also wanted to have a full audit of the company’s account and freeze Wazirx’s assets to stop further losses. But now, none of these requests have been addressed by the court.

What’s going to happen now?

For now, there is no clear path left for the victims to move forward. With around 2,000 crores still not explained and solid legal action is invisible, users are wondering whether they will get their money back or whether the system is not ready to handle such a large crypto case yet.