Days after the Supreme Court of India dismissed a petition filed collectively by WazirX users against the management to retrieve their funds, there is an eerie silence prevalent among them, as all doors seem to have shut, leaving 4.4 million users at the mercy of the cryptocurrency exchange co-founder Nischal Shetty.
As dust settles post-legal debacle, WazirX users are slowly realizing they are back to square one, where the exchange management will decide what happens to their funds after keeping them hostage for almost nine months post-hack on July 18, 2024, worth Rs 2000 crore.
Also Read: Rise and Fall of WazirX: Mapping India’s Biggest Crypto Hack
Over the past nine months, hundreds of WazirX users have navigated various legal systems, including grimy police stations, civil courts, high courts, and the supreme court of India. However, they have been frustrated by the failure of the executive, legislative, and judiciary, as well as the media, which they view as the fourth pillar of democracy.
The excuses dished out to WazirX users have always been the same: “There are no crypto regulations in India,” to “lack of policy from government,” to “crypto is anyway risky and unregulated in the country”, to the classic “it doesn’t fall under our purview.”
Slowly, the users have started to realize it’s not a battle between them and the exchange management but an entire system trying to leech off profits from a thriving crypto economy but is least bothered to cater to the concerns of the users.
What happened to WazirX users’ petition in Supreme Court?
A total of 54 users of WazirX had collectively filed a criminal writ petition against Nischal Shetty and the exchange management, demanding immediate intervention from the Supreme Court to halt the ongoing restructuring process by the exchange in Singapore court and also, meanwhile, launch a parallel investigation against the management for gross mismanagement and criminal negligence in handling public funds in the form of cryptocurrencies.
On April 16, 2025, Justice B. R. Gavai and Justice Augustine Masih dismissed the writ petition, merely under five minutes, citing that there is no proper crypto regulation in India. Justice Gavai is all set to become the next chief justice of India.
Now, the whole situation has become a nightmare for the WazirX users, and their hopes for a legal intervention are at a dead end now. This precarious situation leaves them at the mercy of Shetty and exchange management, who have not been transparent with them since day 1 of the hack.
What has Nischal Shetty promised to WazirX users, and can he deliver?
Now, exchange users are left with not many options but to rely solely on the management, a.k.a. Nischal Shetty, who has promised immediate restoration of 85% of funds in their portfolio (at the time of hack on July 18, 2024) in the next month. Recently, WazirX held a week long vote of its users, taking help of their legal partner Kroll, and claimed that around 93.1% participating users voted in majority for the restructuring scheme.
Also Read: WazirX claims 93.1% users voted yes for restructuring
In the initial months of the hack, Nischal took the platform to a Singapore court, proposing a restructuring scheme where 85% of the portfolio funds of users will be restored by the end of May, while the remaining 15% will be returned in the span of the next 2–3 years.
However, the outcomes depend on Singapore court approval. The process seems complex and fraught with delays. Moreover, the exchange will present the voting results only by May 13, and the outcome will depend on the Singapore court’s final verdict.
Furthermore, the remaining balance will be distributed in additional phases over the next three years. However, this also has some uncertainties as it depends on exchange fund recoveries and future profits
Conclusion
For the millions affected, the situation is deeply unsettling. Many users are frustrated by the lack of clarity and the slow pace of recovery. While some welcome Shetty’s efforts and the Singapore court’s involvement, others are skeptical about whether the promised repayments will materialize.
The WazirX hack is a wake-up call for Indian crypto investors and users. Now they should demand for proper governmental regulatory department and clear rules for cryptocurrencies, just like the United States. The WazirX case was just a preview, and Indian crypto users might face greater challenges if the Indian government does not implement serious cryptocurrency regulations.
