The Supreme Court recently dismissed a petition filed by WazirX users following the platform’s major hack in July 2024. The hack, which resulted in the theft of ₹2,000 crore worth of crypto, left over 4.4 million users locked out of their accounts.
But the real story runs deeper than just a security breach. This incident has exposed some uncomfortable truths about India’s outdated crypto laws and just how vulnerable digital asset holders really are.
How safe is your money really?
On July 18, 2024, WazirX, one of India’s biggest cryptocurrency exchanges, suffered a major cyberattack. Hackers managed to steal a large portion of user funds, sending shockwaves through the Indian crypto market.
Although WazirX promised to return 85% of affected users’ funds by May 2025, many investors were not satisfied. Feeling left in the dark about the platform’s recovery efforts, 54 users filed a petition with the Supreme Court. They sought intervention in WazirX’s ongoing restructuring process in Singapore and demanded a thorough investigation into how user funds were handled.
A bench led by Justice B.R. Gavai and Justice Augustine Masih rejected the petition. The court cited India’s lack of clear cryptocurrency regulations as the reason it could not offer relief to the affected users.
The ruling highlights a troubling reality: victims of crypto hacks like the one at WazirX have very few legal options under the current system. India’s legal framework simply hasn’t kept pace with the rise of digital assets — leaving millions of users exposed to risks.
After the hack, WazirX management proposed a restructuring plan to the Singapore Court. Under the plan, 85% of users’ stolen funds would be restored by May 2025. The remaining 15% would be returned over the next 2–3 years, depending on the company’s recovery and future profits.
Despite initial anger, WazirX says that more than 93% of users voted in favor of the restructuring plan, based on a vote conducted with legal advisory firm Kroll. However, final approval from the Singapore Court is still pending.
The WazirX hack and the court’s ruling have made one thing clear: India urgently needs a strong, modern cryptocurrency regulatory framework.
Countries like the United States are moving ahead with clear, investor-friendly crypto laws. Meanwhile, India risks falling behind — leaving its growing crypto community vulnerable and slowing down innovation.
Without updated regulations, India will continue to face issues like lack of investor protection, legal uncertainty, and missed opportunities in the fast-growing global crypto economy.
A Wake-Up Call for India
The WazirX saga is a warning. As the global crypto industry evolves with Web3, DeFi (Decentralized Finance), and blockchain innovations, India must act quickly to protect investors and encourage responsible growth.
If India fails to introduce forward-looking crypto regulations soon, it risks losing out on the future of finance — and putting millions of digital asset holders at greater risk.
WazirX’s restructuring plan aims to restore 85% of the crypto portfolios for affected WazirX users by May 2025. The remaining 15% of the funds will be returned over the next 2-3 years, depending on the exchange’s recovery and future profits. This plan is part of the ongoing restructuring process being presented in the Singapore court. While WazirX claims over 93% of users support this proposal, the plan still awaits court approval.
WazirX users need to stay updated on the restructuring process, accept the plan, and possibly verify their accounts to claim their share of the 85% fund recovery.
WazirX is restoring 85% due to financial constraints after the hack. The remaining 15% will be returned over 2-3 years, depending on the exchange’s future profits and recovery.
WazirX plans to recover the remaining 15% through future profits and successful financial recovery, returning the funds once the exchange is in a better financial position.
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