The Delhi Court Allows Indian Crypto Traders to Retrieve Funds from WazirX Exchange

The recent ruling by the Delhi court has opened up a pathway for Indian crypto traders to reclaim their funds from the WazirX exchange by seeking assistance from the civil court.

WazirX, a once-popular Indian cryptocurrency exchange, has been dormant for the past three months due to a shortage of digital assets needed to process withdrawals. The leadership at WazirX is reportedly working on a restructuring plan for the platform, which is set to be unveiled in November in hopes of regaining customer trust and support.

One affected user, representing a group of WazirX customers who suffered losses in a hack that resulted in a substantial amount of funds being compromised, stated that the exchange is currently holding less than 55% of the customers’ assets. This paints a grim picture of the exchange’s future prospects.

In a significant development, the Delhi High Court has instructed the Financial Intelligence Unit (FIU) and the Enforcement Directorate (ED) to launch an investigation into the Rs 2,000 crore hack that took place at WazirX.

The court has also granted permission to Jaivir Bains, the petitioner, and other affected WazirX customers to seek legal recourse through the civil court in India to recover their funds from the exchange.

It is noteworthy that despite the lack of regulations surrounding cryptocurrencies in India, the court has directed the FIU to investigate the WazirX hack, marking a significant development in the Indian crypto landscape.

Previously, India’s consumer affairs agency refrained from taking action against WazirX, citing directives from the Reserve Bank of India (RBI).

Experts have pointed out that the court’s decision to involve the FIU and ED in probing the Rs 2,000 crore hack at WazirX represents a crucial step in the Indian legal system, particularly given the unregulated nature of cryptocurrencies in the country. This move indicates that despite regulatory uncertainties, authorities in India are beginning to address crypto-related issues with seriousness.

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