The Supreme Court recently rejected a petition that was submitted by Wazirx users after the most important hack of the platform in July 2024. The hack, which resulted in the theft of RS. 2,000 crore in crypto, more than 4.4 million users left from their accounts.
This incident, and the rejection by the Petition Court, has emphasized the striking gaps in the Crypto regulations of India, making users vulnerable and raise questions about the ability of the country to protect holders of digital power.
The Wazirx -Hack: a blow for 4.4 million users
On July 18, 2024, Wazirx, one of the largest crypto exchanges in India, was the target in a huge hack that saw a considerable part of the stolen user funds. Despite the promise of the stock market to restore 85% of users’ funds by May 2025, many affected users are dissatisfied with the compensation plan. This led 54 to submit a petition to the Supreme Court, to request intervention in the current restructuring process in Singapore and to request a thorough investigation into the mismanagement of the Exchange Fund.
The decision of the Supreme Court: a setback for users
The Supreme Court, led by Justice BR Gavai and Justice Augustine Masih, rejected the petition, referring to the absence of clear crypto instructions in India. The ruling underlined the restrictions of the current legal framework, as a result of which victims of crypto -hacks, such as the Wazirx incident, with little story in the Indian legal system.
Wazirx’s restructuring plan: Fondsherstel on the Horizon
In response to the hack, the Wazirx management proposed a restructuring plan to the Singapore Court, which promised to restore 85% of the affected user funds in May 2025. The remaining 15% will be returned the following 2-3 years, depending on the recovery and future profit of the stock market. Although the restructuring plan has been given user support, the approval of the Singapore Court is still being processed.
Wazirx users vote for the recovery plan
Despite the legal obstacles, Wazirx claims that more than 93% of users supports the restructuring proposal of the stock market, after a vote that is carried out in collaboration with legal company Kroll.
The call for crypto regulation in India
The Wazirx case serves as a wake-up call for India, with an emphasis on the urgent need for a clear and robust regulatory framework for cryptocurrency. Although countries such as the US have embraced pro-Crypto policy, the legal attitude of India is largely outdated. The Wazirx -Hack exposes how the failure of India to take on progressive crypto laws, endangers users, allowing the sector to reach its full potential.
While the global crypto landscape continues to evolve, India is lagging the risk of falling behind if it does not tackle its legal shortcomings. The Wazirx -Saga illustrates the challenges that users are confronted with in a legal vacuum and emphasizes the need for stronger regulations to protect the growing crypto community in India.
FAQs
The Wazirx restructuring plan is intended to restore 85% of the crypto portfolios for affected Wazirx users in May 2025. The remaining 15% of the funds will be returned in the coming 2-3 years, depending on the recovery and future profit of the exhibition. This plan is part of the continuous restructuring process that is presented in the Singapore court. Although Wazirx claims that more than 93% of users support this proposal, the plan is still waiting for the court’s approval.
Wazirx users must stay informed of the restructuring process, accept the plan and possibly verify their accounts to claim their share in the recovery of 85% funds.
Wazirx recovers 85% due to financial limitations after the hack. The remaining 15% will be returned in 2-3 years, depending on the future profit and repair of the stock market.
Wazirx is planning to restore the remaining 15% through future profit and successful financial recovery, the return of the funds as soon as the stock market is in a better financial position.
Credit : coinpedia.org
