Supreme Court Rulings On Cryptocurrency Wallet Theft
While the Supreme Court of India has not yet delivered a comprehensive judgment specifically addressing cryptocurrency wallet thefts, several recent decisions and observations have shaped the legal landscape concerning cryptocurrency-related crimes. Below is an analysis of key cases and rulings that provide insight into how Indian courts are approaching such issues:
1. WazirX Hack and Victim Compensation
In July 2024, the WazirX cryptocurrency exchange suffered a significant cyberattack, resulting in the theft of approximately $234.9 million (around ₹2,000 crore) worth of crypto assets. The Supreme Court of India dismissed a petition filed by victims seeking compensation, stating that the matter fell within the policy domain and advising petitioners to approach relevant regulatory bodies instead.
2. Bail Conditions in Cryptocurrency Fraud Cases
In a notable case from Raipur, Chhattisgarh, the Supreme Court granted bail to an individual accused in a cryptocurrency scam involving approximately ₹4 crore, defrauding around 2,000 investors. The court imposed a stringent condition, requiring the accused to deposit ₹35 lakh within six months as a guarantee for their appearance during trial proceedings.
3. Regulatory Gaps and Judicial Observations
The Supreme Court has acknowledged the absence of a dedicated legal framework to regulate cryptocurrencies in India. In a case involving allegations of bitcoin extortion, the bench observed that existing laws are obsolete and cannot adequately address issues related to cryptocurrencies. The court emphasized the need for legislative action to fill this regulatory void.
4. Delhi High Court's Stance on Cryptocurrency Fraud
In July 2025, the Delhi High Court denied bail to Umesh Verma, accused in a cryptocurrency-based scam involving the Dubai-based Pluto Exchange. The court highlighted 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 also noted Verma's history of fraudulent behavior and labeled him a serious flight risk.
5. Calls for Central Bureau of Investigation (CBI) Involvement
In a significant development, a Delhi court recommended that the Central Bureau of Investigation (CBI) take over a major cryptocurrency fraud case involving approximately ₹2,000 crore. The court highlighted the case's vast implications, sophisticated hacking techniques, and potential involvement of global syndicates or even state actors, warranting a national-level investigation. The Times of India
Conclusion
While the Supreme Court of India has not yet delivered a comprehensive judgment specifically addressing cryptocurrency wallet thefts, the aforementioned cases and observations indicate a growing recognition of the complexities and challenges posed by cryptocurrency-related crimes. The judiciary has highlighted the need for a clear regulatory framework and has taken steps to address such issues within the existing legal structure. As the legal landscape continues to evolve, it is anticipated that future rulings will provide more detailed guidance on handling cryptocurrency thefts and related offenses.
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