XRP News Today: Indian Judiciary Acknowledges Cryptocurrency as Property, Establishing a Landmark for Investor Protections

In a significant decision, the Madras High Court in India has prohibited crypto platform WazirX from reallocating a user's 3,532

tokens to cover losses from a $234 million breach that occurred in July 2024, as reported by . Justice N. Anand Venkatesh, who issued the verdict, recognized cryptocurrencies as property under Indian law, thereby strengthening legal safeguards for digital assets and establishing a benchmark for investor protection. The court clarified that although crypto does not have the status of legal tender, it is considered "property that can be possessed and enjoyed beneficially," a stance that experts believe enhances consumer rights and supports the development of more defined regulatory policies.

The dispute involved a user who acquired XRP tokens in January 2024, which were not impacted by the security breach that compromised

and ERC-20 assets from WazirX's hot wallets. The court dismissed the exchange's "socialization of losses" approach, which aimed to spread losses among users as part of a restructuring approved by a Singapore court. Justice Venkatesh determined that the user's XRP, held in trust, could not be redistributed without a contractual agreement, comparing the plan to an unauthorized self-insurance scheme. This differentiation between unaffected and compromised assets demonstrates the court's detailed perspective on crypto asset management and responsibility.

Once India's leading crypto exchange, WazirX has been undergoing a 16-month restructuring since the hack, which led to a halt in withdrawals and trading, according to

. In October 2025, the Singapore High Court approved a plan to restart operations, with 95.7% of creditors in favor and a period of zero-fee trading, as noted by . However, the Madras High Court's decision presents a major challenge, asserting that Indian courts have authority over domestic transactions, even when exchanges are subject to foreign restructuring orders. The court referenced cases such as PASL Wind Solutions v. GE Power Conversion India to highlight its jurisdiction over assets within India.

The ruling carries significant weight for India's digital asset sector. Sudhakar Lakshmanaraja, who leads Digital South Trust, remarked that the decision "bolsters protections for crypto investors and lays the groundwork for more transparent fiduciary standards." With more than 20 million Indians owning digital currencies, the court's acknowledgment of crypto as property could shape future regulatory measures, especially as the government enforces a 30% tax on gains and a 1% TDS but has yet to establish comprehensive investor protections.

The relaunch of WazirX has received varied feedback. Although 95.7% of creditors approved the restructuring, users have reported difficulties accessing their funds, with some accounts still restricted; the relaunch schedule was also highlighted by

. The court's involvement adds further complexity, requiring that assets unaffected by the hack remain separated. Vikram Subburaj, CEO of Indian exchange Giottus, described the verdict as "a foundational moment for crypto law," indicating that platforms must now meet higher standards of governance.

The Madras High Court's stance is also in line with international developments. Countries such as the UK and New Zealand have similarly classified crypto as property, but India's judgment is among the clearest. The court cited Lee Reiners' paper from Duke Law and global cases like Ruscoe v. Cryptopia Ltd. to illustrate that features like identifiability, transferability, and control via private keys make crypto comparable to traditional property. This legal certainty could help strengthen India's crypto industry, which records $10 billion in annual trading despite unclear regulations.

WazirX has yet to issue a statement regarding the judgment, but the case highlights the increasing influence of the judiciary in shaping crypto regulation. As platforms like WazirX and CoinSwitch work through post-hack recovery, the Madras decision affirms that user assets must be managed as trust obligations rather than as interchangeable liabilities. With the Indian crypto market expected to expand, this ruling could become a key reference point for future laws balancing innovation and investor safety.

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