The Bombay High Court has ruled in favor of CoinSwitch, allowing the crypto exchange to recover ₹62 crore in stolen digital assets linked to the WazirX hack of 2024. The verdict reinforces accountability among Indian crypto exchanges and sets a major precedent for investor protection in the country’s digital asset space.
Court Upholds CoinSwitch’s Claim
Justice Sundaresan dismissed Zanmai Labs’ (WazirX’s parent company) petition challenging a previous arbitration order, confirming CoinSwitch’s right to reclaim its stolen funds.
According to the court, CoinSwitch (operated by Bitcipher Labs) is entitled to recover assets frozen on WazirX following the $234 million hack that occurred in July 2024.
“The court recognizes the exceptional circumstances surrounding the WazirX cyberattack and affirms CoinSwitch’s claim to recover its assets,” the judgment read.
The decision also emphasized the need for strong custodial safeguards and exchange transparency to protect user holdings.
Inside the WazirX Hack
The 2024 breach remains one of India’s largest crypto exchange hacks. Hackers exploited vulnerabilities in WazirX’s multi-signature wallets, reportedly managed by Liminal, leading to a loss of over $234 million in ERC-20 tokens.
Investigations linked the attack to the Lazarus Group, a North Korea-based cybercrime organization known for major crypto thefts.
CoinSwitch, which held institutional funds on WazirX, lost about 40.5% of its total assets. The company later filed for arbitration through Nextgendev Solutions, seeking recovery of frozen funds.
WazirX’s Defense Rejected
WazirX argued that the exchange was not liable due to force majeure conditions and ongoing restructuring in Singapore. The High Court rejected this defense, citing inconsistencies and “lack of clarity.”
The ruling upholds earlier tribunal decisions (from December 2024 and March 2025) that directed WazirX to either issue bank guarantees or deposit the equivalent amount in escrow to secure CoinSwitch’s claim.
A Turning Point for Indian Crypto Regulation
Legal experts believe the verdict signals a more mature and responsible framework for the Indian crypto industry.
“This ruling sets a precedent for how Indian courts will handle future crypto-related disputes,” said a blockchain legal analyst. “It sends a message that exchanges must prioritize custody security and user protection.”
For investors, the judgment highlights the importance of using regulated exchanges with transparent asset management and secure custody systems.
What This Means Going Forward
While CoinSwitch continues recovery procedures, the High Court’s verdict strengthens investor confidence and underscores India’s growing focus on crypto governance.
It may also influence future cases involving exchange hacks, custodial failures, and restitution claims, helping shape a more accountable crypto environment in India.
