The Supreme Court examined whether the High Court was justified in cancelling bail on the ground of breach of an undertaking relating to the disclosure of cryptocurrency account credentials and the facilitation of fund withdrawal.

The petitioner’s bail had been cancelled by the High Court on the premise that he had failed to comply with an undertaking to facilitate the withdrawal of funds allegedly due to the complainant. Appearing for the petitioner, counsel submitted that pursuant to the Supreme Court’s earlier order dated 27 January 2026, the petitioner had now facilitated the withdrawal of approximately ₹1.94 crore in favour of the complainant.

The Bench of Chief Justice of India, Justice Surya Kant,Justice Joymalya Bagchi, noted that once compliance with the undertaking had been effected, the very basis for cancellation of bail stood addressed. “That having been satisfied, it is a subject matter of trial.”

During the hearing, disputes arose regarding the total amount allegedly invested and the value of cryptocurrency holdings. While the complainant asserted entitlement to a substantially higher amount, the Court clarified that such questions could not be adjudicated in bail proceedings.

In a pointed observation, the Bench remarked: “Don’t use the criminal law for settling accounts.”

The Court observed that issues concerning the exact quantum due, alleged wrongful conversion of cryptocurrency into fiat currency, and competing financial claims are matters to be determined during trial and not grounds for continued incarceration once compliance with the undertaking is demonstrated.

Appearances: 
Anand Padmanabhan, Sr. Adv; Amjid Maqbool, Adv; Daggar Malhotra, Adv; Pallavi Pratap, AOR