XRP News Today: Madras Court Redefines Crypto as Legal Property, Halts WazirX's Loss-Sharing Plan

The Madras High Court, in a Madras High Court ruling, recognized cryptocurrencies as legal "property" under Indian law and barred WazirX from using a user's 3,532 XRP tokens to offset losses from a $234 million hack in July 2024. Justice N. Anand Venkatesh emphasized that digital assets like XRP are "capable of being enjoyed, possessed, and held in trust," a view consistent with an Indian court recognition of crypto as property rather than mere speculation. The decision halts WazirX's proposed "socialization of losses" plan, which sought to redistribute user assets to cover breach-related costs, and sets a precedent for crypto custody rights in India, with the court blocking WazirX's redistribution plan as a concrete outcome.

The court rejected WazirX's argument that its Singapore-based restructuring plan automatically applied to Indian users, asserting jurisdiction over assets linked to domestic transactions and explicitly blocked WazirX from using user XRP. The affected user, who purchased XRP via an Indian bank account, argued her holdings were separate from the stolen Ethereum-based tokens. Justice Venkatesh agreed, stating the exchange's loss-sharing mechanism lacked contractual basis and violated Indian property laws, as reported by CoinEdition. This ruling aligns with a growing body of Indian crypto jurisprudence, including a recent Bombay High Court decision against similar policies by Bitcipher Labs.

Ripple's CEO Brad Garlinghouse has long emphasized XRP's strategic role in institutional adoption, particularly through Ripple Prime's expansion and the RLUSD stablecoin. Analysts like James Wynn have highlighted XRP's potential, with the token surging 5.4% to $2.57 amid rising institutional demand, including a $100 million ETF milestone and surging CME derivatives trading, as noted in a Coinpedia market update. The Madras ruling could further bolster XRP's utility by reinforcing legal protections for its use in cross-border transactions and custody solutions, a point echoed in a TradingView piece discussing Ripple leadership's outlook.

The decision underscores regulatory uncertainty in India's crypto landscape, where taxation policies (30% gains levy, 1% TDS) coexist with absent investor safeguards. Experts note the ruling pressures policymakers to formalize frameworks for digital asset ownership while holding exchanges to higher fiduciary standards, as covered by Live Bitcoin News. For XRP holders, the judgment provides clarity that their assets cannot be unilaterally diluted by platform failures—a critical factor as Ripple continues expanding institutional-grade services and as investor interest grows, highlighted by James Wynn's investment.