The Delhi High Court has directed the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and other respondents to file their replies to a plea regarding a financial crisis affecting users of BitBNS, a prominent cryptocurrency exchange.
Justice Sachin Datta’s bench has scheduled the next hearing for April 4.
The petition, filed by multiple BitBNS users, urges the court to instruct SEBI, the Union of India, the Ministry of Finance, the RBI, and the Ministry of Electronics and IT to establish a regulatory framework for cryptocurrency exchanges. The goal is to safeguard investors and ensure better oversight of cryptocurrency transactions.
The plea also seeks the formation of a Special Investigation Team (SIT) under the Central Bureau of Investigation (CBI) to register an FIR and conduct a comprehensive probe into allegations of financial fraud, cyberattacks, fund mismanagement, and operational lapses at BitBNS.
Filed through advocates Dinesh Jotwani, Shivalika Midha, Shruti Singh, Bhargav Baisoya, and Aniket Sahu, the petition outlines the dire situation users have faced since a cyberattack on BitBNS in February 2022. It states that many users have been unable to withdraw funds from their wallets, resulting in severe financial and emotional distress.
The plea alleges that several users experienced months-long delays in accessing their legitimate funds, with some entirely unable to withdraw their investments. Additionally, portfolio discrepancies and wallet balances not reflecting market trends have compounded their financial losses.
Despite repeated complaints and requests for resolution, BitBNS has failed to address the issues, leaving crores of user funds inaccessible. Attempts to lodge a joint complaint through the National Cyber Crime Portal have been unsuccessful, citing jurisdictional and infrastructural limitations.
The petitioners emphasized the urgent need for regulatory measures to ensure transparency in the Virtual Digital Assets (VDA) sector. They called for a CBI-led investigation and specific guidelines for VDA service providers to improve compliance and accountability.
The plea also requests the court to order BitBNS and its directors to lift withdrawal restrictions, immediately release the petitioners’ funds, and enable swift INR withdrawals.
Additionally, it seeks directions for government agencies to investigate the alleged offences and provide a roadmap for secure cryptocurrency operations in India.
This case highlights the growing demand for regulation and accountability in the rapidly expanding cryptocurrency market in the country.
