Bombay HC allows Coinswitch to recover assets from WazirX 'cryptot theft case'

In a key judgement, the Bombay High Court has ruled in favor of CoinSwitch, allowing the crypto exchange firm to recover its assets from WazirX, another crypto exchange firm.

In 2024, cybercriminals stole cryptocurrencies worth 234 million dollars from the wallets of WazirX, one of India’s leading crypto exchanges. The case also involved funds amounting to Rs 62 crore linked to CoinSwitch.

Cumulatively, CoinSwitch had Rs 12.4 crore in Indian rupees, Rs 28.7 crore in ERC20 tokens, and Rs



39.9 crore in other tokens stuck on WazirX, amounting to about 2 per cent of all funds of CoinSwitch.

Since WazirX is currently fully owned by Zanmai Labs, the court held that the company bears complete responsibility for the lost funds.

The court emphasised that customer funds are sacred and that users cannot be made to bear losses caused by the mistakes of others. It also rejected a Singapore-based proposal to distribute losses among all customers, thereby prioritising investor protection.