XRP News Today: Indian Court Recognizes Crypto as Property, Setting Legal Precedent for Investor Rights

In a landmark ruling, India's Madras High Court has barred crypto exchange WazirX from redistributing a user's 3,532 XRP holdings to offset losses from a $234 million hack in July 2024, according to Decrypt. The decision, delivered by Justice N. Anand Venkatesh, classifies cryptocurrencies as property under Indian law, reinforcing legal protections for digital assets and setting a precedent for investor rights. The court emphasized that while crypto is not legal tender, it qualifies as "property capable of being enjoyed and possessed in a beneficial form," a move experts say strengthens consumer safeguards and paves the way for clearer regulatory frameworks.

The case centered on a user who purchased XRP tokens in January 2024, which were unaffected by the hack that drained Ethereum and ERC-20 tokens from WazirX's hot wallets. The court rejected the exchange's "socialization of losses" plan, which sought to dilute user assets under a Singapore court-approved restructuring. Justice Venkatesh ruled that the user's XRP, held in trust, could not be redistributed without contractual basis, likening the proposal to an invalid self-help insurance scheme. This distinction between unaffected and hacked assets highlights the court's nuanced approach to crypto custody and liability.

WazirX, India's former largest crypto exchange, has been navigating a 16-month restructuring process following the hack, which froze withdrawals and trading, as reported by Yahoo Finance. The Singapore High Court approved a plan in October 2025 to resume operations, with 95.7% creditor approval and a zero-fee trading phase, according to the Economic Times. However, the Madras ruling introduces a critical hurdle, as it asserts Indian courts' jurisdiction over domestic transactions, even when exchanges operate under foreign restructuring plans. The court cited precedents like PASL Wind Solutions v. GE Power Conversion India to underscore its authority to protect assets held within India.

The decision has broader implications for India's crypto ecosystem. Sudhakar Lakshmanaraja, founder of Digital South Trust, noted the ruling "strengthens consumer protection for crypto-holders and paves the way for clearer fiduciary frameworks." With over 20 million Indians holding digital assets, the court's recognition of crypto as property could influence future regulations, particularly as the government grapples with taxation policies (a 30% levy on gains and 1% tax deducted at source) but lacks comprehensive investor protections.

WazirX's relaunch has been met with mixed reactions. While 95.7% of creditors support its restructuring, users report delays in accessing funds, with some accounts remaining locked; the relaunch timeline was also noted by Coinfomania. The court's intervention adds another layer of complexity, as it mandates that unaffected assets remain segregated. Vikram Subburaj, CEO of Giottus, an Indian crypto exchange, called the ruling "foundational crypto-jurisprudence," signaling that platforms must adhere to high governance standards.

The Madras High Court's decision also aligns with global trends. Jurisdictions like the UK and New Zealand have similarly recognized crypto as property, though India's ruling is among the most explicit. The court referenced Lee Reiners' Duke Law paper and global cases like Ruscoe v. Cryptopia Ltd. to frame crypto's attributes—identifiability, transferability, and private key control—as analogous to traditional property. This legal clarity could bolster India's crypto market, which has seen $10 billion in trading volumes annually, despite regulatory ambiguity.

WazirX has not yet commented on the ruling, but the case underscores the growing role of courts in shaping crypto policy. As exchanges like WazirX and CoinSwitch navigate post-hack recoveries, the Madras decision reinforces that user assets must be treated as trust obligations, not interchangeable liabilities. With India's crypto sector projected to grow, this ruling may serve as a cornerstone for future regulations balancing innovation with investor security.

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Further reading and original reporting include coverage by Yahoo Finance, the Economic Times, Cointelegraph, Reuters, CryptoNews, Coinfomania, Decrypt, Coinotag — XRP property, Decrypt News Explorer, Coinotag — investor shield, Yahoo Finance — redistribution, and Coinotag — Madras view.