Delhi High Court issues notices to FIU and ED regarding WazirX Hack

As a seasoned researcher with a keen interest in digital assets and financial crime, I find the recent turn of events surrounding the WazirX crypto exchange hack quite intriguing. The Delhi High Court’s decision to issue notices to the Enforcement Directorate (ED) and Financial Intelligence Unit (FIU) is a significant step towards potential accountability for those involved in this massive cyber heist.


In response to the Rs 2000 crore cyber attack on WazirX crypto exchange that occurred three months ago, the Delhi High Court has now sent official inquiries to two key financial investigative bodies – the Enforcement Directorate (ED) and Financial Intelligence Unit (FIU) – on Friday. The objective is to determine if an investigation should be initiated against the management concerning the hack.

In simpler terms, Jaivir Bains submitted a court case (writ petition) in the Delhi High Court, requesting that the appropriate courts should make the Financial Intelligence Unit (FIU) and Enforcement Directorate (ED) conduct an investigation into the incident of a Rs 2000 crore hack. Additionally, the petitioner expressed concerns about WazirX management attempting to distribute the loss of 45% user funds by using non-stolen cryptocurrency from users.

A Delhi High Court bench led by Judge Sanjeev Narula has ordered the Deputy Commissioner of Police (DCP) from the Intelligence Fusion and Strategic Operations (IFSO) unit of the Delhi Police to provide an update on their ongoing investigation into the Rs 2000 crore hack. The complete court decision will be published online, likely by Friday evening or Saturday.

Based on trusted insiders from the Delhi High Court, the court has granted permission to Jaivir Bains and other WazirX users to take legal action in Indian civil courts to recover their frozen funds on the platform since July 18. Following a cyber attack, WazirX halted all transactions and withheld cryptocurrency and INR funds belonging to approximately 4.4 million users.

A source told The Crypto Times that since cryptocurrency is currently unregulated in India, the Delhi High Court doesn’t have the power to instruct the Financial Intelligence Unit (FIU) to investigate the hack. However, the court has issued notices to both the FIU and the Enforcement Directorate (ED), asking them to clarify if an investigation into this matter could be initiated.

The individual involved requested the court to initiate an investigation into Zanmai Labs – a company based in India and one of the main entities behind WazirX, a cryptocurrency exchange that was founded by Nischal Shetty.

According to our source, the court hasn’t made any conclusions yet, but it has noted down the arguments presented by the petitioner. Currently, the Delhi Police’s IFSO is probing the case, and they are now required to submit a progress report to the court.

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2024-10-18 12:36