In a landmark development for India’s cryptocurrency sector, the Supreme Court of India has officially listed a criminal writ petition filed by more than 50 victims of the WazirX crypto exchange hack, which took place in July 2024. The petition directly names Nischal Shetty, co-founder of WazirX, and seeks a criminal probe into the matter.
This marks a significant moment in India’s crypto regulatory landscape as victims push for justice, accountability, and stricter compliance from crypto exchanges operating within the country.
Supreme Court Bench Assigned to the Case
The petition has been assigned to the bench of Justice BR Gavai and Justice Augustine Masih, with the hearing scheduled for April 16, 2025. The petitioners, who previously approached the Delhi High Court, have now escalated the matter to the nation’s apex court.
Advocate on Record Priyanka Prakash will represent the petitioners, with Maitreyi S. Hegde, Anjali Anil, and Radhika Prasad leading the arguments in court.
Parties Named in the Writ Petition
The list of respondents in the case is extensive and includes major institutions and individuals:
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Union of India
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Reserve Bank of India (RBI)
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Securities and Exchange Board of India (SEBI)
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Financial Intelligence Unit – India (FIU)
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National Investigative Agency (NIA)
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Central Bureau of Investigation (CBI)
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Serious Fraud Investigation Office (SFIO)
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Zanmai Labs (WazirX)
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Binance Holdings
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Liminal Custody
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Nischal Shetty (WazirX co-founder)
The involvement of these high-profile entities indicates the scale and seriousness of the case.
Allegations Against WazirX and Binance
The petitioners have alleged gross negligence, misuse of public funds, data manipulation, and even fraud on the part of WazirX, Binance, and Liminal Custody. According to estimates, nearly ₹4500 crore worth of crypto funds are at stake.
The central focus remains on the July 2024 hack, where unknown entities breached the platform’s security and siphoned off nearly ₹2000 crore in digital assets.
WazirX’s management has since stated that the platform’s ownership remains under dispute between Zanmai Labs and Binance, further complicating the resolution process.
Impact on Indian Crypto Users
The hack impacted over 4.4 million users, whose funds have remained frozen for more than 10 months. Many users have voiced frustration and called for intervention, highlighting the urgent need for better regulation in the crypto sector.
One victim, Romy Johnson, a tech critic and WazirX user, described the situation as a “turning point in India’s crypto history,” emphasizing that the case exposes structural flaws in the current crypto exchange model.
A Turning Point for Crypto Accountability in India
The Supreme Court’s involvement is a major boost for affected users and may potentially set a legal precedent for crypto consumer protection in India. The case has already attracted nationwide attention, with the outcome expected to influence how cryptocurrency platforms operate under Indian jurisdiction.
Legal and Financial Implications Going Forward
If the petitioners are successful, the outcome could involve:
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Criminal investigation into WazirX and affiliated platforms
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Stricter KYC and compliance rules for crypto exchanges
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Greater accountability from global players like Binance
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Clarity on custodial responsibility in Indian crypto exchanges
The financial and reputational impact on WazirX and its co-founders could be immense.
FAQs
What is the WazirX case being heard by the Supreme Court about?
The case concerns a criminal writ petition filed by victims of the July 2024 WazirX hack, seeking a criminal investigation into the platform’s co-founder Nischal Shetty and others over alleged negligence and mismanagement of funds.
Who are the main parties involved in the petition?
The petition names several respondents, including WazirX, Nischal Shetty, Binance Holdings, RBI, SEBI, FIU-India, NIA, CBI, and others.
How much money was lost in the WazirX hack?
Approximately ₹2000 crore worth of cryptocurrencies were allegedly stolen during the cyberattack on WazirX in July 2024.
What is the main allegation against WazirX and Binance?
Petitioners claim there was gross negligence in the management of crypto assets, misuse of public funds, and lack of transparency about the platform’s ownership and security protocols.
When is the Supreme Court hearing scheduled?
The first hearing is scheduled for April 16, 2025, under the bench of Justice BR Gavai and Justice Augustine Masih.
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Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.