The recent Rs 2000 crore hack of the cryptocurrency exchange WazirX has prompted the Delhi High Court to take significant legal steps. The court has issued notices to India’s Enforcement Directorate (ED) and the Financial Intelligence Unit (FIU) to explore the possibility of launching an official investigation into this substantial cyberattack that targeted WazirX and its management.
Legal Pathway for Affected Users
In a notable development, the High Court has empowered WazirX users to pursue recovery of their funds through civil courts in India. This decision comes as a significant relief to the platform’s 4.4 million users, whose cryptocurrency and INR balances have been frozen by WazirX following the cessation of all transactions post-attack in July.
Legal Action as a Result of the Writ Petition
This legal maneuver follows a writ petition filed by a WazirX client, Jaivir Bains, who demanded clarity on how such a massive breach occurred. Bains also raised concerns about the exchange’s approach to externalizing the losses by locking up 45% of users’ funds and contemplating using non-stolen currency to mitigate the hackers’ impact.
Report Investigative Ordered
Honorable Justice Sanjeev Narula, who is presiding over the case, has tasked the IFSO unit of the Delhi police with submitting a status report on the ongoing investigation. The court is expected to provide further details on the order shortly. This case plays a crucial role in addressing the security challenges associated with cryptocurrencies, especially considering the uncertainties surrounding cryptocurrency exchanges in India.
Implications and Future Outlook
The court’s actions underscore the increasing need for robust security measures within the cryptocurrency industry. As digital currencies gain prominence, ensuring the safety of user funds becomes paramount. The outcome of this case may set significant precedents for how cryptocurrency exchanges operate in India, potentially influencing regulations and security protocols.
Stay Informed with Us for More Updates
As the cryptocurrency landscape continues to evolve, staying informed is essential. Follow our updates for more inspiring posts and stories about the latest developments in the world of digital currencies and blockchain technology.
“`
This enriched content now features enhanced SEO compatibility with expanded information and structured HTML headings to improve readability and search engine visibility.
