India’s Madras High Court has issued a landmark interim ruling officially recognizing cryptocurrencies like XRP as property under Indian law. This decision marks a significant legal milestone, affirming that digital assets are tangible ownership rights subject to existing property laws.
The ruling emerged from a petition filed by a WazirX user whose XRP holdings were frozen following a major hack at the exchange. The court’s decision strengthens protections for crypto holders in India and aligns the country with other nations that treat cryptocurrencies as property.
Madras High Court Classifies Crypto as Ownable Property
On October 25, the Madras High Court ruled that cryptocurrencies such as XRP qualify as “property capable of being possessed and held in trust.” This classification formally acknowledges digital assets as a distinct form of intangible property under Indian jurisdiction.
XRP operates on the XRP Ledger, a decentralized blockchain network developed by Ripple Labs. It is primarily used for fast and low-cost cross-border payments.
Case Origins: WazirX Hack and Frozen Assets
The ruling arose from a petition filed by Rhutikumari, a WazirX user whose 3,532.30 XRP—worth approximately $9,400—were frozen after the exchange suffered a $235 million hack in July 2024. WazirX, one of India’s largest cryptocurrency exchanges, had implemented a “socialization of losses” plan to distribute the financial impact across all user accounts.
Rhutikumari challenged the exchange’s action, asserting it violated her property rights over her XRP holdings. WazirX argued that the restructuring plan was approved by a Singapore High Court and thus outside Indian jurisdiction.
Indian Court Affirms Jurisdiction and Protects Crypto Ownership
The Madras High Court rejected WazirX’s jurisdictional claim, noting that since the petitioner funded her account through an Indian bank and accessed the platform domestically, the case falls within Indian legal authority.
Justice N. Anand Venkatesh delivered the interim order, confirming that digital assets like XRP are intangible yet ownable property—not speculative instruments. The court emphasized that cryptocurrency ownership merits legal protection equivalent to other property classes.
Interim Relief Measures
The court barred Zanmai Labs, WazirX’s Indian operating entity, from reallocating Rhutikumari’s XRP assets. It also ordered the exchange to provide a bank guarantee of approximately $11,500 as interim relief.
Global Context of Crypto as Property
- In the U.S., the Internal Revenue Service treats cryptocurrencies like Bitcoin and XRP as property for tax purposes, subjecting them to capital gains tax.
- The U.K. courts recognize crypto as personal property, enabling remedies such as injunctions and asset recovery.
- Singapore’s High Court affirmed digital assets are “property capable of being held on trust,” ensuring civil law protections.
India’s Madras High Court ruling places the country alongside these jurisdictions in providing legal clarity and protections for cryptocurrency ownership.
