The Supreme Court of India has rejected a plea filed by 54 users of WazirX, who lost funds in a cyberattack reported to be worth ₹2,000 crore. The court ruled that it was not the appropriate forum to handle the matter. It advised the petitioners to approach the Union Government and financial regulators instead.

This decision comes as a major setback for the affected users, who had hoped the top court would order urgent action. The case now moves out of the courts and into the hands of government bodies. These include the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Central Bureau of Investigation (CBI), Coinpedia reported.

Investors Claim ₹4,500 Crore Losses in WazirX Hack

The cyberattack took place in July 2024. Since then, the users have tried several legal channels. They first approached lower courts and then the Delhi High Court. When those efforts failed, they turned to the Supreme Court.

Some petitioners have alleged negligence by WazirX’s leadership, including co-founder Nischal Shetty. A few even claim that the total loss may be closer to ₹4,500 crore. These claims have not been independently verified.

Adding to the uncertainty is an ongoing dispute between WazirX and Binance. The two companies disagree over who owns and controls the exchange. This has further complicated efforts to recover the missing funds.

You may find it interesting at FinanceMagnates.com: WazirX Didn't Insure Customers’ Funds: Plans to Lock 45% Assets of ‘All Users’.

Supreme Court Rejects WazirX Victims' Requests

The Supreme Court bench, led by Justice B.R. Gavai and Justice Augustine Masih, said that issues linked to cryptocurrencies are part of government policy. According to the bench, courts cannot intervene directly in such matters. The judges advised the users to submit their concerns to the relevant authorities.

The petitioners had requested a special investigation team to be formed. They wanted this team to include officials from financial and law enforcement agencies. They also called for a forensic audit of WazirX and the freezing of its assets. The court declined to act on these requests.

No further hearing has been scheduled. The victims remain without a clear legal route to recover their money. With no resolution in sight, the incident continues to raise concerns about the legal and regulatory response to large-scale crypto crimes in India.

Source: Finance Magnates