Startup Originals Team
In a major move for India’s crypto sector, the Delhi High Court has directed Zettai Pte Ltd-the Singapore-based parent company of cryptocurrency exchange WazirX-to disclose all agreements with Binance and submit comprehensive details of its ongoing restructuring plan. The order is aimed at shedding light on WazirX’s ownership, accountability for a $235million hack, and its controversial recovery effort, marking a key moment for legal and regulatory oversight in Indian crypto.
Court’s Directive: Zettai Must Disclose Binance Agreement and Restructuring
Justice Sachin Datta, on August 5, 2025, ordered Zettai to file a copy of its contract with Binance within one week. The court also asked the company to submit all relevant documents from the Singapore High Court proceedings covering WazirX’s restructuring scheme and how it plans to settle debts with creditors. The directive follows mounting concerns raised by users and creditors after a massive $235million cyberattack hit WazirX in July 2024.
A revote on a revised restructuring plan has just been completed, with broader creditor participation and third-party verification through Kroll Issuer Services, observed by Alvarez & Marsal. The outcome of this plan will be critical for WazirX’s path forward in repaying its creditors and regaining trust.
Ownership Mystery: Binance Deal in the Spotlight
At the heart of the crisis is WazirX’s complex relationship with Binance. In 2019, Binance initially signed an agreement to acquire WazirX, but later claimed the deal was never finalized-an assertion repeated as recently as September 2024. When the hack took place, Binance publicly distanced itself from any operational involvement, calling WazirX’s efforts to pass on blame “a disappointing deflection tactic.” This ownership ambiguity has fueled demands from creditors and the public for greater transparency about who controls and is ultimately liable for WazirX.
Legal Battle and Demands for Investigations:
The present court action was triggered by creditors Sudhir Verma and Kunal Dhariwal, who not only questioned the handling of the $235million breach but also pushed for a Special Investigation Team (SIT) to probe possible misconduct, working with international experts in cybercrime, financial fraud, and economic offenses. Their petition led the Delhi High Court to issue notices to over 10 parties-among them the Reserve Bank of India (RBI), SEBI, and multiple government departments-asking for updates on regulatory steps and enforcement actions against WazirX.
Regulatory Ripple Effect: RBI, SEBI Drawn In
The court’s move signals a shift toward increased regulatory scrutiny for crypto platforms in India. Both the RBI and SEBI have been asked to explain their current oversight mechanisms and what concrete actions have been taken regarding WazirX’s troubles. This is viewed as a strong message that crypto users’ rights to information and asset ownership now have judicial backing, with India’s central institutions under pressure to respond.
Next Steps: Hearing Set and Future Outlook
The next hearing is scheduled for August 26, 2025, where RBI officials must be present and provide updates. The issue of WazirX’s ownership, debt restructuring, and possible regulatory reforms remain unresolved. However, stakeholders see the High Court’s intervention as a step towards overdue transparency and a wake-up call for tougher crypto regulations in response to one of India’s biggest digital asset scandals.
Conclusion: Toward Accountability and Regulatory Reform
The Delhi High Court’s order marks a turning point for WazirX and India’s wider crypto ecosystem. By forcing disclosure of the Binance agreement and demanding a clear restructuring roadmap, the judiciary is pushing for real accountability and setting a precedent for user rights and transparency in a sector often criticized for its opacity.
