WazirX hack update: Bombay High Court favors CoinSwitch in $6.8M crypto dispute

Traders Union
All News
Crypto News
Wazirx hack update

All news

Top Stories

Editors' Picks

Crypto News

Financial News

Market Voices

Billionaires

Companies

Broker News

Regulators News

Yaroslav Dmytrenko

10.10.2025

WazirX hack update: Bombay High Court favors CoinSwitch in $6.8M crypto dispute — CoinSwitch wins $6.8M recovery case after WazirX hack

WazirX’s institutional partner — trading app and crypto wallet CoinSwitch — has won the right to recover ₹62 crore ($6.82 million) frozen after the WazirX exchange hack. The Bombay High Court upheld CoinSwitch’s right to reclaim the stolen digital assets, strengthening exchange accountability and setting a key precedent for investor protection in India’s fast-growing crypto ecosystem.

On October 9, 2025, Justice Sundaresan dismissed a petition from WazirX’s parent company, Zanmai Labs, challenging a prior arbitration ruling. The court confirmed that CoinSwitch (Bitcipher Labs) is entitled to recover its stolen crypto assets — worth ₹62 crore — which had been frozen on WazirX following a $234 million breach in July 2024.

“The court acknowledges the exceptional circumstances of the cyberattack on WazirX and affirms CoinSwitch’s right to recover its assets,” the ruling stated, emphasizing the importance of robust asset protection measures on crypto exchanges.

Previous tribunal rulings from December 2024 and March 2025 required WazirX to either provide bank guarantees or deposit equivalent funds in escrow to secure CoinSwitch’s claim. WazirX’s attempt to overturn these rulings was firmly rejected.

A precedent-setting case

CoinSwitch, one of WazirX’s institutional partners, lost over 40% of its holdings during the hack. The platform promptly initiated arbitration through its affiliate Nextgendev Solutions to reclaim the frozen funds.

WazirX argued that it was not liable, citing force majeure and ongoing restructuring proceedings in Singapore aimed at socializing losses. However, the court dismissed these arguments, noting “ambiguity and lack of clarity,” and reaffirmed WazirX’s obligation to comply with the tribunal’s directives.

“This judgment signals the development of a legal framework for cryptocurrencies in India. Exchanges must now ensure strong security and transparent asset management to protect investors,” said a blockchain law expert.

For users, the Bombay High Court’s decision marks a critical legal precedent in resolving crypto-related disputes in India. Experts believe it could influence future cases involving exchange hacks, custody liabilities, and investor protection, paving the way for a safer and more accountable Indian crypto ecosystem.

As we wrote, Stolen billions: How North Korea profits from cryptocurrency

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.