- Madras High Court classifies XRP as property, granting crypto assets clear ownership rights under Indian law.
- The ruling came from a WazirX dispute over frozen XRP following a 2024 cyberattack on the exchange.
- India joins the U.S., U.K., and Singapore in recognizing cryptocurrencies as property capable of legal protection.
The Madras High Court has issued a landmark ruling recognizing XRP as property under Indian law, a move that provides crucial legal clarity for the country’s crypto sector. The decision arose from a dispute involving the crypto exchange WazirX and an investor whose 3,532.30 XRP tokens were frozen following a 2024 cyberattack.
Justice N. Anand Venkatesh ruled that cryptocurrencies, though intangible, are “property capable of being possessed and held in trust.” This interpretation marks the first judicial acknowledgment in India that digital assets can carry the same ownership rights as traditional property, offering a defined legal standing for holders of virtual digital assets (VDAs).
Court Clarifies Crypto Ownership Under Indian Law
The case, Rhutikumari v. Zanmai Labs Pvt. Ltd., centered on a WazirX account freeze after a July 2024 hack that drained about $235 million in user assets. The petitioner challenged WazirX’s “socialization of losses” plan, which aimed to spread the losses across all users.
In response, the court required WazirX to provide a financial guarantee worth roughly $11,500 and prohibited it from reallocating the user’s XRP. The judgment cited Section 2(47A) of India’s Income Tax Act, which defines VDAs, emphasizing that crypto assets meet the legal criteria for property because they are transferable and subject to exclusive control.
The court also rejected WazirX’s argument that Singapore-based arbitration barred Indian jurisdiction. It held that since the investor accessed the platform from India and transferred funds from an Indian bank account, the case fell under domestic law. This clarification reinforces that Indian courts can preside over disputes involving virtual assets held by residents, even when exchanges operate under foreign legal structures.
Legal Recognition Strengthens Investor Protection
By confirming that cryptocurrencies can be held and enjoyed as property, the ruling enhances the legal protection of investors. Holders now have a clearer basis to assert ownership rights when exchanges freeze accounts or restructure assets.
Notably, the Madras High Court’s position aligns India with global precedents such as the U.K.’s AA v. Persons Unknown and Singapore’s ByBit Fintech Ltd v. Ho Kai Xin, both of which recognized crypto assets as property subject to proprietary rights.
This classification allows courts to apply established property remedies like injunctions or recovery orders to digital assets. It may also compel Indian exchanges to review custody practices, ensuring they comply with domestic ownership standards.
India Aligns With Global Property Standards for Crypto
India’s recognition of XRP as property positions it alongside major jurisdictions such as the United States and Singapore, where similar rulings define crypto assets under property law.
In the U.S., the Internal Revenue Service classifies virtual currencies as property for tax purposes, enabling seizure or freezing during investigations. Similarly, English and Singaporean courts have extended trust protections to crypto holders, establishing a legal framework for recovery in cases of fraud or misappropriation.
Although the Madras High Court’s order remains interim, it represents a major step in clarifying how India views digital asset ownership. It bridges legal ambiguity around cryptocurrencies’ status, setting the groundwork for future legislation governing the country’s virtual asset ecosystem.
