Delhi High Court Declines Action Against Indian Crypto Exchange Bitbns

India's cryptocurrency dispute over Bitbns has taken a decisive turn with the Delhi High Court declining to intervene in investor complaints seeking a Central Bureau of Investigation (CBI) probe and fund recovery. In its ruling, the court emphasized that private exchanges like Bitbns do not fall within its writ jurisdiction, as they are classified as non-state entities under Article 12 of the Constitution.

The Delhi High Court bench cited constitutional rules, stating that high courts typically use writ powers only against government bodies or public authorities. Private companies, such as Bitbns, normally do not come under this category unless they perform official state functions. As a result, the court rejected investor petitions filed by Rana Handa and Aditya Malhotra, among others.

The decision has significant implications for India's evolving digital asset sector, particularly in the absence of specific crypto laws. Until Parliament enacts legislation addressing cryptocurrencies, disputes between exchanges and users will likely continue to be litigated in traditional civil and criminal courts. The court's advice to investors is to file FIRs with local police and pursue civil suits against Bitbns for alleged fraud or breach of trust.