The Indian Supreme Court recently dismissed a petition from 54 users affected by the WazirX hack, which occurred in 2024 and involved a loss of ₹2,000 crore (approximately $234 million). The court cited the absence of a clear regulatory framework for cryptocurrencies, leading to the dismissal of the cases against the exchange’s management, including co-founder Nischal Shetty, and organizations like Binance Holdings and Liminal Custody.

Many victims were seeking urgent relief, emphasizing issues such as gross negligence, mismanagement, and inadequate security measures that contributed to the cyberattack. The court remarked it was “not inclined to entertain the plea,” leaving victims without recourse.

If the 🇮🇳Indian judiciary can’t act against #WazirX citing a “lack of laws & regulations”
Then why are Indian crypto users still forced to pay 1% TDS & 30% tax on profits? So, are we only good enough to be taxed but not protected by laws, guidelines or clear regulations…
- Ajay Kashyap (@EverythingAjay) on April 16, 2025

On July 18, 2024, the notorious Lazarus Group, believed to be backed by North Korea, executed the cyberattack on WazirX, exploiting vulnerabilities in the exchange’s security protocols. Victims have since been grappling with the aftermath of this significant financial incident.

Key Court Findings

The Supreme Court indicated that this matter lies outside judicial control, suggesting victims approach government bodies for help. Additionally, there was a call for the formation of a Special Investigation Team (SIT) to delve deeper into the circumstances surrounding the hack.

WazirX’s Recovery Efforts

As legal proceedings continue, WazirX has initiated restructuring efforts, claiming over 90% credit approval for its fund recovery program. However, financial analysts predict that investors might only be able to reclaim 45-50% of their losses. Future plans for fund distribution, initially set for immediate execution, are now on hold, with speculation about delays pushing the timeline to May.

There’s some FUD claiming that the WazirX fund distribution is delayed. We’re on track and fully focused. Please ignore the noise,…
- Nischal (Shardeum) on April 11, 2025

Summary of Key Points:

• Supreme Court dismisses the victims’ petition, emphasizing the need for clearer crypto regulations.
• Victims expect minimal recovery (45-50%) from the hack due to ongoing complications.
• The legal authority suggests shifting requests for assistance to the government and relevant regulatory bodies.

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