Delhi HC notices on plea to restrain restructuring of WazirX crypto assets
This story was originally published at 19:48 IST on 7 April 2025
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Informist, Monday, Apr. 7, 2025
NEW DELHI – The Delhi High Court has issued notices to the government, online crypto exchange WazirX and others on an application seeking to restrain the restructuring and disposal of crypto assets belonging to WazirX's users. The high court will hear the case next on Apr. 29. Earlier, over 93% of WazirX's creditors voted in favour of the company's proposed restructuring scheme, a step towards reimbursements after last year's hack.
The case has its genesis in a cyberattack on WazirX's platform on Jul. 18, resulting in the theft of digital assets exceeding $230 million from one of its multi-signature wallets. Also known as a "multisig wallet", a multi-signature wallet is a cryptocurrency wallet that requires two or more signatures to confirm and carry out a transaction.
The petitioner Sudhir Verma and others, users of WazirX, contested the proposed scheme saying that the unaffected crypto assets worth nearly INR 44 billion were being subjected to rebalancing and liquidation to meet the liabilities and operational expenses of Zettai, WazirX's majority shareholder. This action was being taken without the consent of the users and in violation of their rights, the petitioners said.
In addition, the scheme imposes a condition on users to withdraw legal proceedings and indemnify the platform, regardless of their agreement to the scheme, said the petitioners. The petition also contested the neutrality of the voting process managed by a private advisor. After the voting process, Zettai will now file an application before the Singapore High Court to receive approval for the scheme. The petitioners said that the restructuring being pursued before the Singapore High Court was meant to bypass Indian legal scrutiny.
The high court had on Jan. 15 issued notices to the government, the Reserve Bank of India, and other parties on Verma's petition that sought direction to constitute a special investigation team to conduct a thorough probe into alleged cyberattacks on WazirX and violations associated with the platform's operation. End
Reported by Surya Tripathi
Edited by Saji George Titus
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