WazirX Hack: Court Rejects Petition, Crypto Users Left in the Lurch!

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In a rare instance of justice being, well, nowhere to be found, the Supreme Court has recently dismissed a petition from WazirX users following the catastrophic hack in July 2024. In a move that shocked no one, over 4.4 million users are still locked out of their accounts, while their crypto—worth a staggering Rs. 2,000 crore—has taken a one-way trip to an unknown location. A bit of a misstep on their part, wouldn’t you say? 😒

The court’s decision to reject the petition is a masterclass in how to highlight the enormous void in India’s crypto regulations. As it stands, digital asset holders are at the mercy of whatever the exchange feels like doing, and so far, that’s been very little. One wonders whether India’s lawmakers have even heard of this thing called “progress.” 🙄

The WazirX Hack: A Major Blow to 4.4 Million Users

On the fateful day of July 18, 2024, WazirX, one of India’s crypto giants, was hacked in a manner that can only be described as “not great.” A significant portion of user funds was stolen, and in a stunning show of confidence, the exchange promised to “restore” 85% of user funds by May 2025. The remaining 15%? Well, that will take a few more years, depending on the exchange’s future profits. In a show of discontent, 54 particularly disgruntled users decided to file a petition with the Supreme Court, asking for some accountability in the ongoing Singapore-based restructuring. You can almost hear them shouting, “Is that too much to ask?”

Supreme Court’s Decision: A Setback for Users

The Supreme Court, in its infinite wisdom, chose to dismiss the petition, citing the absence of any clear crypto regulations in India. According to Justices B R Gavai and Augustine Masih, without clear rules, there’s not much to be done—except, of course, leave the victims stranded. How very “let them eat cake” of them. 🥂

WazirX’s Restructuring Plan: Fund Recovery…Eventually

In a fit of apparent good intentions, WazirX management put forth a restructuring plan before the Singapore court. The plan is as follows: 85% of the stolen funds will be returned by May 2025, and the remaining 15% will trickle in over the next 2-3 years. Because who doesn’t love a nice, drawn-out recovery process, right? But of course, the Singapore court still has to approve the plan, so let’s not get too excited. 🕰️

WazirX Users Vote in Favor of the Recovery Plan

Despite the legal challenges, WazirX proudly claims that over 93% of users support the restructuring plan, according to a survey conducted with the legal firm Kroll. This probably says more about the users’ desire to get something back, rather than any deep-seated trust in the company’s management. But hey, let’s all hope the 85% figure sticks, shall we?

The Call for Crypto Regulation in India

While the WazirX debacle is certainly eye-catching, it serves a much deeper purpose: a glaring reminder that India’s crypto regulations are stuck in the digital dark ages. Meanwhile, the rest of the world moves ahead, with countries like the U.S. embracing crypto like a long-lost cousin at a family reunion. India? Still waiting for someone to write the rules. It’s almost as if lawmakers believe that if they ignore it long enough, the problem will just go away. Spoiler: it won’t. 💥

If India wants to remain relevant in the global crypto scene, it’ll need to stop sleeping at the wheel. WazirX, while an important case, is just the beginning of a much bigger problem. The lack of regulation has left users exposed to risks, and if the government doesn’t act soon, this trend will continue. India could either evolve with the times or end up watching the rest of the world zip past it. The clock is ticking. ⏰

FAQs

How does WazirX’s restructuring plan work for affected users?
WazirX’s restructuring plan promises to restore 85% of funds by May 2025, with the remaining 15% following over the next 2-3 years, contingent on the exchange’s recovery. The plan is still awaiting court approval, so don’t start celebrating just yet.

What steps are WazirX users required to take to benefit from the proposed 85% fund recovery?
Users need to stay informed about the restructuring process, accept the plan, and possibly verify their accounts to claim their 85% share of the funds.

Why is WazirX promising to restore only 85% of users’ funds, and what happens to the remaining 15%?
WazirX is only able to restore 85% because, well, it got hacked. The remaining 15% will be returned over the next few years, based on how well the exchange recovers financially. Don’t hold your breath.

How will WazirX recover the remaining 15% over the next 2-3 years?
It’s all about future profits, folks. WazirX plans to pay the remaining funds once it gets back on its feet. So, for now, just sit tight and wait for that miracle recovery.

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2025-04-28 10:54