Indian Court Declares XRP as Property in Landmark Ruling After WazirX Hack

In a landmark decision, the Madras High Court in India has ruled that XRP and other cryptocurrencies constitute property under Indian law.

The verdict, delivered by Justice N. Anand Venkatesh, could significantly shape how digital assets are legally recognized and how crypto platforms handle client funds in the country.

Cryptocurrencies Recognized as Property Under Indian Law Justice Venkatesh stated that cryptocurrencies possess the characteristics of movable and identifiable property that can only be managed through private keys. This, he said, makes them a unique form of ownership with definable value and rights. The ruling stemmed from a case linked to a cyberattack on the WazirX crypto exchange, operated by Zanmai Labs Pvt Ltd.

In January last year, an investor had purchased 3,532.3 XRP worth ₹198,516. However, in July, WazirX suffered a massive hacking incident, where Ethereum and ERC-20 tokens worth roughly $230 million were stolen. After the attack, WazirX froze several user accounts, including that of the XRP investor, who later filed for legal protection of her assets.

Court Rejects WazirX’s Singapore Jurisdiction Argument WazirX argued that the dispute should fall under Singaporean jurisdiction, as its parent company, Zettai Pte Ltd, is based in Singapore. The exchange claimed that all user accounts were subject to a collective loss-sharing order under Singaporean law following the hack. Justice Venkatesh dismissed this claim.

He ruled that since the investor’s transactions were conducted via an Indian bank account, the Madras High Court had jurisdiction.

He further clarified that Indian courts have the authority to protect assets located in India, even if arbitration or related proceedings take place abroad. The judge also noted that the hack affected only Ethereum-based tokens, not XRP — meaning the investor’s holdings remained untouched. “Cryptocurrencies, including XRP, meet the definition of virtual digital assets under Section 2(47A) of the Income Tax Act, 1961,” Justice Venkatesh stated.

Crypto Assets Are Property, Not Speculation The ruling also established that crypto assets can no longer be considered speculative transactions in India. Instead, they are now recognized as digital property with quantifiable ownership rights, falling under legal protection. This interpretation marks a major milestone for India’s digital economy, setting a precedent for how courts will handle future crypto-related disputes and regulatory questions.

Court Urges Stronger Governance and Oversight for Crypto Platforms The court’s decision went beyond property classification.

Justice Venkatesh called on crypto exchanges and Web3 companies to:

🔹 Separate client funds from operational accounts,

🔹 Enable independent audits, and

🔹 Comply with corporate governance standards similar to traditional financial institutions. The court also emphasized the importance of rigorous KYC and anti–money laundering procedures to prevent illicit activity and build investor trust. “Indian courts now play a key role in shaping trust, accountability, and rights within the digital economy,” Justice Venkatesh said.

Broader Implications The Madras High Court’s decision could have far-reaching consequences for India’s cryptocurrency landscape.

It provides a clearer legal framework, officially recognizes cryptocurrencies as digital property protected by ownership rights, and pressures crypto exchanges to operate with greater transparency and accountability. XRP thus becomes not only a technological symbol, but also a legal milestone in the global recognition of digital assets.

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