The Supreme Court of India on Wednesday dismissed the criminal writ petition filed by users of WazirX cryptocurrency exchange, demanding immediate intervention of the highest court and ordering a probe against the co-founder Nischal Shetty and exchange management.
A two-member bench comprising Justice BR Gavai and Justice Augustine Masih dismissed the petition filed by as many as 54 users of WazirX, and claimed that even the most apex court is not the relevant authority in the case, since cryptocurrencies are a policy-related issue.
SC Advocate-on-record (AOR) Priyanka Prakash, representing the victims, told The Crypto Times:
“The Supreme Court has refused to entertain the plea by WazirX users, stating they are not the relevant authorities. Additionally, they have given us the liberty to approach Union of India and other appropriate forums. As of now, we have not decided on the next approach.”
Almost 10 months after ₹2,000 crore vanished from WazirX wallets in a massive cyberhack, the victims took their battle to the Supreme Court — only to face a major setback. In a crucial hearing today, the apex court dismissed the criminal writ petition filed by 54 affected users, stating that the Supreme Court is not the relevant authority to hear the matter.
The bench of Justice BR Gavai and Justice Augustine Masih noted that the petitioners have the liberty to approach the Union of India and the relevant regulatory authorities instead.
This effectively closes the current legal route the victims had been relying on for justice.
This dismissal has left users devastated. For many, this was the final legal recourse after a long chain of attempts for redressal. Initially, several victims had gone to local courts, only to be redirected to the Delhi High Court. When that didn’t yield results, they escalated the matter to the Supreme Court — which has now refused to intervene.
This effectively puts WazirX users back at the beginning, leaving them uncertain about their next steps. Despite losing their assets in one of India’s biggest crypto heists, there is still no clarity on whether justice will be delivered — or how.
Here’s what the WazirX users petition demanded:
1. A Multi-Agency Special Investigation Team
The petitioners have asked for a Special Investigation Team (SIT) to be constituted, drawing officers from six major institutions: the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), the Financial Intelligence Unit (FIU), the National Investigation Agency (NIA), the Central Bureau of Investigation (CBI), and the Serious Fraud Investigation Office (SFIO).
The goal is for a thorough probe into WazirX and all associated entities, especially considering the nature of the ₹2,000 crore cyber heist that took place on July 18, 2024.
As the petition puts it:
“To appoint a special investigation team consisting of the officers of the Reserve Bank of India, SEBI, FIU, NIA, CBI, and SFIO into affairs of WazirX and its associated entities, in view of the alleged hack occurred on 18.07.2024 and to submit the report before this Hon’ble Court within a time frame to be fixed by this Hon’ble Court.”
2. A Full Forensic Audit
The victims also want an independent team of financial auditors to go through WazirX’s books, ledgers, and internal records — and report directly to the Supreme Court. They believe this will help uncover whether the company was complicit or grossly negligent in handling user assets.
From the petition:
“To appoint a special team of auditors to look into the financial statements and other necessary documents of WazirX and to submit a report before this Hon’ble Court within a time frame to be fixed by this Hon’ble Court.”
3. Don’t Let WazirX Touch Our Assets
To avoid further damage, the petitioners are seeking urgent directions to ensure their portfolios aren’t modified, drained, or tampered with during the legal process. If not that, they want WazirX’s accounts — and those of its directors — frozen immediately.
“To direct WazirX not to tamper with or modify or vary the portfolios held by the petitioners until this writ petition is finally heard and disposed off; or in the alternative, to direct the Reserve Bank of India or the concerned authority to freeze the accounts of WazirX and the directors of the company.”
Who’s named in the SC petition by WazirX users?
The list of respondents includes some of the most powerful regulatory and enforcement agencies in the country — and beyond.
Here’s who the petition has named:
- Union of India, represented by the Ministry of Finance
- Reserve Bank of India (RBI)
- Securities and Exchange Board of India (SEBI)
- Financial Intelligence Unit (FIU)
- National Investigation Agency (NIA)
- Central Bureau of Investigation (CBI)
- Serious Fraud Investigation Office (SFIO)
- Zanmai Labs, the company that operates WazirX
- Nischal Shetty, co-founder and CEO of WazirX
- Binance Holdings Ltd., represented by its Head of Regional Markets, Vishal Sacheendran
- Liminal Custody Solutions Pvt. Ltd., the crypto custody partner involved with WazirX
With today’s dismissal, there’s no clarity on whether a future hearing or any alternative date has been fixed. The Supreme Court has left the door open only slightly — by allowing the petitioners to approach the relevant government bodies. Whether that leads to justice or simply more red tape remains to be seen.
Also Read: WazirX Live: Supreme Court takes petition against Nischal Shetty
