The Madras High Court recently shattered India’s crypto norms by declaring XRP and other cryptocurrencies as protected property. The landmark ruling emerged from the WazirX hack case, establishing digital assets as identifiable, transferable property controlled through private keys—not mere speculative instruments. The court blocked WazirX from redistributing unaffected tokens, affirming crypto as the holder’s property, not the exchange’s. Over 20 million Indian crypto users just gained considerable legal protection. The implications stretch far beyond this single case.
In a landmark decision that’s sending ripples through India’s crypto environment, the Madras High Court has officially declared XRP and other cryptocurrencies as protected property under Indian law. The ruling clearly states that digital assets are identifiable, transferable, and controlled through private keys—basically everything that defines movable property. This isn’t just legal jargon; it’s a fundamental shift in how India views cryptocurrencies.
The case sprung from a massive WazirX hack in July 2024. Hackers made off with $230 million in Ethereum and ERC-20 tokens. Brutal. One investor had 3,532.3 XRP tokens worth about ₹198,516 sitting in their account. These tokens weren’t stolen, but WazirX froze them anyway.
Then came the wild part: the exchange considered redistributing unaffected tokens to cover stolen assets. The court said, “Absolutely not.”
Indian courts weren’t messing around with jurisdictional nonsense either. WazirX’s parent company is based in Singapore, but the court firmly declared that Indian law applies to domestic crypto transactions. Period. Singapore laws? Not relevant here. This strengthens the Indian judiciary’s control over crypto exchanges operating within its borders.
For everyday crypto holders, this decision is substantial. It means exchanges can’t just treat your digital assets like their personal piggy bank. Your crypto is YOUR property. The ruling reinforces that exchanges must segregate client funds and adopt proper compliance measures. About time.
The market implications aren’t small either. With over 20 million Indian crypto users, this judicial clarity might accelerate regulatory frameworks around custodial standards. It’s a considerable pivot from viewing cryptocurrencies as mere speculative instruments to legitimate assets with tangible ownership rights. This parallels the ongoing debate in the U.S. where Ripple’s legal defense strategy against the SEC has emphasized XRP’s utility rather than its security characteristics.
Section 2(47A) of the Income Tax Act now has teeth when it defines virtual digital assets as movable property. The court emphasized these are intangible assets—not legal tender—but they’re capable of being held in trust and protected by law. That’s what matters. Game changer.
The court’s judgment cited prominent legal precedents including Ahmed GH Ariff v. CWT to establish the foundational principles of property rights that now extend to digital currencies. Justice Venkatesh emphasized that this ruling aims to promote investor protection by establishing accountability standards for cryptocurrency exchanges operating in India.
