Supreme Court Rulings On Blockchain And Cryptocurrency Evidence
1. Delhi Court's Consideration of Cryptocurrency Transactions (2021)
Case Overview:
In a notable case, a Delhi court examined the legality of cryptocurrency transactions under existing Indian laws, including the Prevention of Money Laundering Act (PMLA), the Indian Penal Code (IPC), the Foreign Exchange Management Act (FEMA), and the Narcotic Drugs and Psychotropic Substances Act (NDPS).
Judicial Findings:
The court held that transactions involving cryptocurrency must comply with the general laws in force in India. This includes adherence to regulations concerning money laundering, foreign exchange, and drug-related offenses. The court emphasized that while cryptocurrencies are not explicitly recognized under Indian law, their use in illegal activities is subject to existing legal frameworks.
Impact:
This case highlighted the need for clarity in the legal status of cryptocurrencies and the applicability of traditional laws to digital assets.
2. Delhi High Court Denies Bail in Cryptocurrency Scam Case (2025)
Case Overview:
In July 2025, the Delhi High Court denied bail to Umesh Verma, accused of defrauding 61 investors through a cryptocurrency-based scam involving the Dubai-based Pluto Exchange.
Judicial Findings:
The court emphasized the detrimental economic implications of cryptocurrency-related fraud, describing it as a threat due to the conversion of legitimate money into untraceable funds. The court noted Verma's history of fraudulent behavior and labeled him a serious flight risk.
Impact:
This decision underscored the judiciary's recognition of the serious nature of cryptocurrency-related fraud and its potential impact on the economy.
3. Bitcoin Extortion Case in Ahmedabad (2025)
Case Overview:
In a landmark judgment, a special anti-corruption court in Ahmedabad sentenced 14 individuals, including 11 police officials and a former BJP MLA, to life imprisonment in a 2018 Bitcoin extortion case. The accused conspired to kidnap and extort cryptocurrency from a Surat businessman who had gained bitcoins after investing in a failed business.
Judicial Findings:
The court convicted the accused for conspiring to extort cryptocurrency, highlighting the use of digital assets in criminal activities. The judgment emphasized the need to curb corruption and uphold public trust in the legal system.
Impact:
This case demonstrated the judiciary's ability to address crimes involving digital assets and set a precedent for handling cryptocurrency-related offenses.
4. Legal Recognition and Admissibility Challenges in India
Overview:
Presenting blockchain evidence in Indian courts requires extensive technical documentation, including cryptographic proofs, network consensus verification, and hash chain validation. Legal practitioners must develop new skills in technical evidence presentation and expert witness coordination.
Judicial Considerations:
The complexity of blockchain evidence presentation may necessitate specialized training for judges and lawyers, similar to existing programs for digital forensics and cybercrime investigation. The courts must balance the need for thorough blockchain evidence verification with accessibility concerns, particularly in cases involving individual litigants without extensive technical resources.
Impact:
This highlights the challenges in integrating blockchain technology into the legal system and the need for capacity building within the judiciary.
5. Supreme Court's Direction for Clear Crypto Guidelines (2025)
Case Overview:
In May 2025, the Supreme Court of India directed regulatory bodies to develop clear guidelines for governing cryptocurrency activities in the country.
Judicial Findings:
The Court emphasized that regulators should focus on establishing oversight frameworks that reflect the rising adoption of digital assets across the country rather than pursuing a ban.
Impact:
This direction signifies the Court's recognition of the growing importance of cryptocurrencies and the need for a structured regulatory approach.
Conclusion
While the Supreme Court of India has not yet ruled on the admissibility of blockchain or cryptocurrency evidence, lower courts have begun to address issues related to digital assets. The judiciary's approach indicates a recognition of the complexities introduced by digital currencies and the need for legal frameworks to evolve accordingly. As the use of cryptocurrencies continues to grow, it is anticipated that the Supreme Court will eventually provide authoritative guidance on these matters.
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