CoinSwitch Vs WazirX: Bombay HC Dismisses Zanmai Labs’ Appeal

The Bombay High Court dismissed Zanmai Labs’ appeal against an arbitral tribunal order that favored CoinSwitch in a dispute over frozen crypto assets. The tribunal had earlier directed Zanmai to furnish bank guarantees worth around INR 45.38 crore to secure CoinSwitch’s claims. The appeal, filed under Section 37 of the Arbitration & Conciliation Act, was rejected—upholding the interim arrangement and safeguarding CoinSwitch’s right to recover its crypto holdings from WazirX. The dispute stemmed from WazirX’s decision to “socialize” losses after a system breach, which CoinSwitch opposed, arguing it violated user agreements. The judgment underscores judicial deference to arbitral orders, the importance of interim measures in crypto asset disputes, and compliance obligations in emerging fintech sectors.