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According to the recent updates, the WazirX crypto hack has officially taken a controversial turn. India’s Supreme Court recently dismissed a plea filed by 54 aggrieved investors who were victims of a staggering ₹2,000 crore (approx. $240 million) crypto heist on the WazirX exchange. The ruling was seen as both a legal and emotional blow to thousands of Indian crypto users seeking justice.
In July 2024, WazirX, one of India’s largest digital asset platforms, suffered a catastrophic breach. What followed was chaos, confusion, and now, judicial silence. While the matter has captured the attention of financial authorities and tech investigators alike, victims continue to face uncertainty about the recovery of their funds.
How the ₹2000 Crore WazirX Crypto Hack Happened
The WazirX crypto hack wasn’t your typical phishing scam or accidental leak. It was reportedly orchestrated through an advanced attack targeting WazirX’s multisignature wallet infrastructure. Investigations initially pointed fingers at North Korea’s Lazarus Group—one of the world’s most notorious cybercriminal collectives, as highlighted in Coinpedia’s investigation.
The attackers successfully siphoned off massive amounts of crypto from platform hot wallets. The sheer scale of the hack affected over 4 million registered users, sparking national outrage and legal action.
Legal Chaos: Victims Left in the Dark
What happened next deepened the crisis. Over 50 victims filed a joint petition with the Supreme Court, demanding an urgent hearing, immediate investigation, and restitution. The court, however, rejected the plea, suggesting that the matter be redirected to appropriate regulatory and financial authorities like the Ministry of Finance or Reserve Bank of India.
This decision leaves investors in a bureaucratic limbo, amplifying frustrations over India’s lack of clear crypto legislation. Critics argue that this could set a dangerous precedent for future cybercrimes involving digital assets.
Ongoing Investigations and Arrests
Despite the court’s dismissal, law enforcement agencies are actively investigating. A major breakthrough came when Delhi Police arrested SK Masud Alam, who allegedly helped launder a portion of the stolen funds through complex cross-border transfers. Forensic audits are still underway, with many assets either frozen or traced to international wallets.
Additionally, India’s Financial Intelligence Unit (FIU) and Enforcement Directorate (ED) are stepping in to assess WazirX’s internal compliance and security protocols.
What is WazirX doing to Fix the Damage?
In response to the WazirX crypto hack, the exchange’s parent company, Zettai Pte Ltd, filed for a four-month moratorium in Singapore. The company proposed a recovery model that includes a partial return of 85% of the stolen user funds using liquid assets and specially issued “recovery tokens.”
While the move is seen as a temporary lifeline, critics argue that merging stolen and untouched user funds could lead to unfair dilution and greater financial damage for those unaffected.
The Regulatory Blindspot
This massive breach has exposed a significant blind spot in India’s crypto regulation. The country still lacks a defined legal framework for digital assets, making investor protection largely theoretical. Without concrete legislative guardrails, investors are left to rely on fragmented consumer protection laws and international treaties.
As the WazirX crypto hack unfolds, it shines a glaring spotlight on the need for proactive legal reform.
Final Thoughts
The WazirX crypto hack is not just a wake-up call—it’s an alarm bell ringing across India’s entire financial system. Investors trusted a platform that couldn’t protect their assets, and the nation’s highest court has opted out of intervening.
For now, it’s a waiting game between justice and legislation. But one thing’s clear: India’s crypto ecosystem must evolve—and fast—before trust in the system evaporates for good.
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FAQs
Q1: What caused the WazirX crypto hack?
A complex exploit of the exchange’s multisignature wallet system.
Q2: Why did the Supreme Court reject the petition?
The court said it wasn’t the right authority and suggested regulatory bodies handle the issue.
Q3: Has any money been recovered?
A recovery plan to reimburse 85% of affected funds is in place but not yet finalized.
Q4: Is WazirX still operational?
Yes, but with restricted functionality and pending restructuring efforts.
Glossary of Key Terms
WazirX: One of India’s largest crypto exchanges.
Multisignature Wallet: A crypto wallet requiring multiple keys to authorize a transaction, intended to enhance security.
Moratorium: A legal delay in obligations like debt or refunds.
Lazarus Group: Infamous hacker group allegedly backed by North Korea.
Recovery Tokens: Crypto assets distributed as compensation after a loss.
Sources
Coinpedia – Supreme Court Rejects WazirX Crypto Hack Petition
LiveMint – WazirX Hack: Consumer Court Dismisses Lawsuit
CryptoNewsLand – Delhi High Court Investigation Into ₹2000 Cr WazirX Hack
Financial Express – Singapore Court Grants WazirX 4-Month Moratorium
