Crypto Chaos: Court Confirms CoinSwitch’s Right to Reclaim ₹62 Crore Stolen in WazirX Hack!

In the hallowed halls of the Bombay High Court, amidst the echoes of past judgments and the solemnity of justice, a tale of stolen digital gold was spun. The remarkable saga of CoinSwitch’s dramatically portrayed right to reclaim its purloined treasure, a veritable ₹62 crore, emerged like a phoenix from the ashes left by the infamous WazirX hack that rattled India’s crypto scene back in 2024. Justice, it seemed, was finally on the side of the exchange, bolstering the fragile foundations of accountability and security in the chaotic world of cryptocurrency. 🚀

Court Declares CoinSwitch the Avenger of Stolen Crypto!

On the fateful day of October 9, 2025, Justice Sundaresan scoffed at the feeble attempts of WazirX’s parent company, Zanmai Labs, to challenge an earlier arbitration edict. “Oh, do try harder!” seemed to be the unspoken message. The court reaffirmed that CoinSwitch (yes, that’s Bitcipher Labs, for those of you following along at home) had every right to secure its frozen fortunes-holdings amassed like a dragon hoarding gold-following the cataclysmic cyber-attack back in July 2024, which some say was worth more than the very social fabric of the crypto market at $234 million.

“The court acknowledges the unique situation of the WazirX cyber-attack and supports CoinSwitch’s quest for its lost assets,” read the verdict, mimicking a mother scolding her children about responsibility. “We must have better custodial safeguards in this digital playground!”

In earlier rounds of court drama, the tribunal had instructed WazirX to either contribute financial guarantees or sweeten the pot with equivalent funds, ensuring that CoinSwitch had a safety net while its claim floated precariously. WazirX’s desperate gambit to overturn these demands was swiftly stamped out-like a fly in a soup, really.

The Breathtaking $234 Million WazirX Showdown

That fateful July day-oh, what a day it was!-witnessed the birth of one of India’s most audacious cryptocurrency catastrophes. Hackers, those nefarious tricksters, took advantage of WazirX’s multi-signature wallets (oh, how naive) managed by Liminal. The result? Total chaos, losses that eclipsed the $234 million mark in ERC-20 tokens – mostly disappearing into thin air, a magic trick worthy of Las Vegas. Investigators, with the drama of detectives chasing after shadows, pointed fingers at none other than the infamous Lazarus Group, who apparently were just waiting to rain on everyone’s parade. 🎩

CoinSwitch watched in disbelief as nearly 40.5% of its fortune evaporated in the digital ether during the heist. Acting with the swiftness of a cornered beast, it initiated arbitration proceedings through its affiliate, Nextgendev Solutions, like a warrior rushing into battle to reclaim its lost riches.

The Well-Loved Defense of WazirX Crumbled

In the courtroom, WazirX performed its best impression of a child caught with its hand in the cookie jar, arguing that they bore no responsibility. “It was a force majeure, I swear!” they exclaimed, citing ongoing restructuring processes aimed at sharing the love-or losses, rather-among partners. But the court waved this away like an annoying gnat, saying, “Nice try, folks, but that’s not gonna fly!”, reiterating that WazirX had to comply with the tribunal’s orders, leaving them to ponder their failures.

“This judgment heralds a new era for cryptocurrency law in India,” a chained blockchain legal expert remarked with a twinkle in his eye. “Exchanges must now maintain robust security measures and custodial transparency, lest they wish to see their assets vanish like a good magician’s trick.”

The Ripple Effect on India’s Crypto Marketplace

For those wading through the bewildering waters of cryptocurrency, this decision underscores the dire need for exchanges that uphold security protocols strong enough to withstand even the fiercest of storms. The lesson here? Choose wisely, or risk losing your digital McGuffins in a sea of uncertainty. ☠️

While CoinSwitch presses on with its recovery efforts, the ruling sets in stone a pivotal legal precedent, influencing the wild west of crypto disputes in India. Experts predict this could shape future outcomes surrounding devastating breaches, custodial liabilities, and the ever-so-cherished investor protection, coaxing the ecosystem closer to a safer, more reliable haven for digital dreamers.

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Curious Questions Answered

So, what came of the grand WazirX hack court saga?

Why, the Bombay High Court upheld CoinSwitch’s right to reclaim ₹62 crore, securing its first step towards salvaging lost dignity amongst the calamity of the 2024 hack!

And who was the villain of our tale?

The notorious Lazarus Group took center stage during the $234 million WazirX hack, exploiting the exchange’s vulnerabilities like a conman at a church picnic. 🙄

2025-10-10 12:59