- The Madras High Court affirms that crypto can be property and held in trust.
- WazirX is barred from redistributing investors’ untouched XRP holdings.
- Ruling strengthens investor rights and Web3 governance in India.
In a landmark judgment with potential to reshape cryptocurrency law in India, the Madras High Court has held that cryptocurrencies qualify as property under Indian law.
Delivered by Justice N. Anand Venkatesh, the judgment confirms that cryptocurrencies can constitute property, may be held in trust, and enjoy protection as legal assets — an important clarification of the legal status of digital assets in the country.
Cryptocurrency in India now recognized as property
The case arose from a petition by an investor whose 3,532.30 XRP coins were frozen after a cyberattack on WazirX, one of India’s largest cryptocurrency exchanges.
In July 2024 the platform suffered a $234 million hack involving Ethereum and ERC-20 tokens.
Although the investor’s XRP holdings were not among the stolen assets, WazirX attempted to redistribute all user funds under a so-called “socialization of losses” plan.
Justice Venkatesh emphatically rejected that proposal, ruling that each investor’s digital assets are individual property that cannot be diluted or redistributed to cover exchange losses.
He stressed that while cryptocurrencies are intangible, they possess all essential characteristics of property — they are identifiable, transferable, and exclusively controlled through private keys.
“It is not tangible property and it is not currency,” the judge observed. “However, it is property that can be enjoyed and possessed in a beneficial form.”
This interpretation grants holders of digital assets stronger legal status and ensures their cryptocurrencies are recognized as assets protected by Indian law.
Jurisdiction and investor protection
The Court also resolved jurisdictional questions and rejected WazirX’s argument that Singapore arbitration rules applied because the parent company, Zettai Pte Ltd, is based in Singapore.
Justice Venkatesh referred to the Supreme Court’s earlier decision in PASL Wind Solutions Pvt Ltd v. GE Power Conversion India Pvt Ltd (2021), noting that Indian courts have authority over assets located in India.
Because the investor’s transactions originated in Chennai and involved an Indian bank account, the Court held that the matter fell squarely within Indian jurisdiction.
The court further emphasized that Zanmai Labs Pvt Ltd, which operates WazirX in India, is registered with the Financial Intelligence Unit (FIU) — unlike the foreign parent company or Binance.
This distinction reinforced that exchanges operating within India are subject to Indian oversight and accountability, particularly when it comes to safeguarding user assets and maintaining transparent custody practices.
Strengthening Web3 governance
Justice Venkatesh’s decision went beyond individual relief and called for higher corporate governance standards across the Web3 and crypto sectors.
He urged exchanges to maintain segregated customer funds, conduct independent audits, and implement robust KYC and anti-money-laundering controls.
The Court noted that such measures are vital to building trust in the digital economy and protecting consumers from future misuse of assets.
Legal experts praised the ruling as a milestone in the evolution of “crypto jurisprudence” in India.
Vikram Subburaj, CEO of the Indian exchange Giottus, described the judgment as a defining moment that signals to all market participants — exchanges, users and regulators — that the digital asset space will be held to strong standards of governance and protection.
A foundation for India’s crypto future
The ruling not only protects individual investors’ rights but also strengthens the broader regulatory framework around digital assets.
By recognizing cryptocurrency as property, the judgment fills a crucial legal gap in a country where tax enforcement on crypto remains strict but investor protections have lagged.
As Justice Venkatesh wrote, courts now serve as the “central forum where the future of digital value is debated.”
With this decision, the Madras High Court has provided clearer guidance on ownership, accountability, and trust in the age of decentralization.
As cryptocurrencies in India gain formal recognition as property under Indian law, the ruling marks a turning point for the country’s digital asset ecosystem — affirming that crypto holdings are not merely speculative instruments but protected assets under the law.