Madras rules crypto is property, bars WazirX from XRP redistribution

The Madras High Court on Oct. 25 ruled that cryptocurrencies qualify as property under Indian law and barred WazirX from redistributing a customer's frozen XRP holdings as part of the exchange's proposed loss‑sharing plan, delivering a legal win for an investor whose assets were affected by a 2024 hack. Justice N. Anand Venkatesh ordered Zanmai Labs, the operator of WazirX in India, to furnish a bank guarantee worth about 9.56 lakh rupees, roughly 11,500 U.S. dollars, equivalent to the petitioner's 3,532 XRP, while arbitration proceeds.

The court held that cryptocurrency "is not a tangible property nor is it a currency. However, it is a property, which is capable of being enjoyed and possessed in a beneficial form," and said such assets can be held in trust. Justice Venkatesh rejected WazirX's contention that a Singapore High Court approved restructuring and arbitration process automatically bound Indian users, finding that the petitioner had accessed the platform from India and transferred funds from an Indian bank account. The judge compared the exchange's socialization of losses proposal to a form of pooled insurance that was not supported by the parties' contracts and...