1 month ago
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The Delhi court’s latest ruling now allows Indian crypto traders to retrieve their funds from the WazirX exchange by approaching the civil court.
WazirX, once a popular Indian crypto exchange, has been inactive for the last three months due to insufficient cryptocurrencies to process withdrawals. Currently, the WazirX leadership is reportedly working on a platform restructuring plan, set to be revealed in November to gain customer support.
One X user, representing WazirX customers affected by the hack that resulted in a significant loss of funds, claimed that the exchange is not even holding 55% of the customers’ assets. In short, there seems to be no sign of revival for the exchange.
In the latest development, the Delhi High Court has directed the Financial Intelligence Unit (FIU) and the Enforcement Directorate (ED) to investigate how the Rs 2,000 crore hack happened.
The court also permitted petitioner Jaivir Bains and other WazirX customers to seek civil court intervention in India to recover their funds from the exchange.
It is significant that despite cryptocurrencies being unregulated in India, the court ordered the FIU to investigate the WazirX hack, a major development for the Indian crypto sector.
Earlier, India’s consumer affairs agency declined to take any action against WazirX, citing instructions from the Reserve Bank of India (RBI).
Experts noted that the court’s decision to involve the FIU and ED in investigating WazirX’s Rs 2,000 crore hack is a significant step in Indian jurisdiction, especially since cryptocurrencies are still unregulated in the country. This development indicates that despite regulatory uncertainty, Indian authorities are beginning to treat crypto-related issues seriously.
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