Three months after the Rs 2000 crore hack of the WazirX crypto exchange, the Delhi High Court has begun reviewing the case.

Case Background

In July, a significant theft of Rs 2000 crore occurred on the WazirX crypto exchange. Client Jaivir Bains filed a petition demanding an investigation and expressed concern over the management's attempts to socialize the loss among users.

Court's Response

The Delhi High Court has issued notices to the Enforcement Directorate (ED) and Financial Intelligence Unit (FIU) to assess the possibility of an investigation. Judge Sanjeev Narula instructed Delhi Police to provide a status report on the investigation's progress. Sources indicate that the court allowed victims to seek fund recovery via civil courts.

Impact on Users

Following the incident, WazirX suspended all transactions and froze crypto and INR assets of 4.4 million users. This has led to widespread dissatisfaction among the platform's clients. The source noted that due to the unregulated status of cryptocurrencies in India, the court faces limitations in direct decision-making.

The Delhi Court continues to monitor developments, requesting police reports on the investigation's status, and exploring legal avenues for assessing the theft on WazirX.