The Delhi High Court has issued notices to the Enforcement Directorate (ED) and Financial Intelligence Unit (FIU) to investigate the management of WazirX crypto exchange, three months after the platform suffered a massive INR 2000 crore hack. WazirX is India’s one of the most trusted bitcoin and cryptocurrency exchanges and trading platforms founded by Nischal Shetty, Sameer Mhatre and Siddharth Menon in 2028.
The Delhi High Court has taken up a writ petition filed by Jaivir Bains, seeking an investigation into the INR 2000 crore hack. Bains wants the court to order the Financial Intelligence Unit and Enforcement Directorate to probe the matter. Additionally, he objects to WazirX management’s attempt to offset the loss of 45% of user funds using non-stolen cryptocurrency funds.
A single-judge bench headed by Justice Sanjeev Narula instructed the Deputy Commissioner of Police of Delhi Police’s Intelligence Fusion and Strategic Operations unit to submit a status report on the investigation. The detailed court order is expected by Friday evening or Saturday.
The Delhi High Court has given Jaivir Bains and other WazirX users the green light to approach civil courts in India to recover their stuck funds. This development comes after WazirX suspended all transactions and withheld crypto and INR funds of 4.4 million users following a massive cyber attack on July 18.
The court acknowledged that since cryptocurrency is unregulated in India, it lacks the authority to order the FIU to investigate the hack. However, the court has issued notices to FIU and the ED to clarify whether an investigation can be initiated.
The petitioner has requested the Delhi High Court to investigate Zanmai Labs, an Indian-based parent entity of WazirX, a cryptocurrency exchange co-founded by Nischal Shetty.
“The court has not recorded any findings but they have recorded the submissions made by the petitioner. The Delhi Police’s IFSO is already investigating the case and now they have to submit a status report to the court,” said the source
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