Aniket Ghosh Comments on Legal Remedies Available to Indian Users Affected by Binance Security Breach

Aniket Ghosh shared his legal insights with Moneycontrol on the remedies available to Indian users affected by the Binance security breach and the legal considerations surrounding the recovery of their cryptocurrency assets.

Explaining the legal position in India, Aniket observed that there is currently no crypto-specific legal provision that mandates refunds to users in the event of such security breaches. He noted that virtual digital assets are not covered by deposit insurance or any statutory compensation fund. Consequently, the obligation to compensate affected users rests primarily on contractual terms and the commitments made by the cryptocurrency exchange.

Aniket further explained that while Binance’s public assurance regarding compensation carries significance, its legal enforceability would depend on the platform’s user agreements, including governing law provisions, arbitration clauses and liability limitations. Until a formal compensation framework is published, affected users should treat the assurance as a strong commitment rather than an automatically enforceable legal entitlement.

Advising affected customers on the immediate steps they should take, Aniket recommended preserving account statements, transaction histories, KYC records and all communications with the exchange. He also emphasised the importance of filing written complaints through the platform’s official support channels to maintain a documented record of the grievance.

However, he cautioned that pursuing these remedies may not necessarily result in an immediate refund. Enforcing an Indian court order against an offshore cryptocurrency platform could involve additional jurisdictional and practical challenges, potentially complicating the recovery process.

The commentary highlights the contractual and jurisdictional complexities surrounding cryptocurrency-related disputes in India and the importance of understanding the legal remedies available to users dealing with offshore digital asset platforms.

Read the full article here: https://www.moneycontrol.com/news/business/personal-finance/binance-security-breach-what-should-affected-indian-users-do-to-protect-their-crypto-assets-14064735.html 

Last Updated on 6 November, 2026