Delhi High Court Commences Investigation into ₹2,000 Crore WazirX Hack
In a significant development, the Delhi High Court has launched an investigation into the ₹2,000 crore hack of popular Indian cryptocurrency exchange, WazirX. The court has issued notices to the Enforcement Directorate and the Financial Intelligence Unit, following requests for accountability from an investor named Jaivir Bains.
The hacking incident occurred in July 2024 and resulted in a loss of approximately ₹1,900 crores from WazirX’s multi-signature wallet server. In response to the breach, WazirX’s management made the decision to merge both affected and unaffected user funds, which has raised concerns among users about the fair distribution of losses.
Justice Sanjeev Narula presided over the hearing and recognized the complexity of the situation, emphasizing the need for transparency. The Deputy Commissioner of Police from the Intelligence Fusion and Effective Operations unit has been instructed to provide a status report on the ongoing investigation, demonstrating the court’s commitment to ensuring accountability in the cryptocurrency sector.
The regulatory framework governing WazirX, which falls under the oversight of the Financial Intelligence Unit, has come under scrutiny as existing guidelines appear inadequate for effectively addressing such incidents. It has further been revealed that the stolen funds were transferred to Singapore, adding complexity to the recovery efforts and raising concerns about investor protections in the cryptocurrency market.
This case has significant implications for the broader cryptocurrency market, as investors closely observe how the court’s findings will impact trust in digital asset trading. The ongoing scrutiny may prompt other exchanges to enhance their security measures and management practices.
As the legal proceedings unfold, stakeholders eagerly await developments that could shape the regulatory landscape. This investigation may lead to the establishment of stricter standards for cryptocurrency exchanges in India, inevitably influencing the future of crypto trading and investor protections in the country.