- The Madras High Court confirms that cryptocurrencies can be owned and held in trust.
- WazirX is prohibited from redistributing investors’ unaffected XRP holdings.
- The ruling strengthens investor rights and Web3 governance in India.
In a landmark judgment that could reshape the cryptocurrency landscape in India, the Madras High Court has declared that cryptocurrencies qualify as property under Indian law.
Delivered by Justice N. Anand Venkatesh, the Court’s decision holds that cryptocurrencies can be owned, held in trust, and protected as legal property—an important clarification of the legal status of digital assets in the country.
Cryptocurrency in India is now recognized as property
The case originated from a petition by an investor whose 3,532.30 XRP coins were frozen following 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 petitioner’s XRP holdings were not among the stolen assets, WazirX proposed redistributing all user balances under a so-called “loss socialization” plan.
Justice Venkatesh firmly rejected that proposal, ruling that each investor’s digital holdings constitute individual property and cannot be diluted or redistributed to cover exchange losses.
He emphasized that cryptocurrencies, while intangible, possess the essential attributes of property: they are identifiable, transferable, and controlled exclusively through private keys.
“It is not tangible property nor is it a currency,” the judge observed. “However, it is property that can be enjoyed and beneficially possessed.”
This interpretation provides digital asset holders a stronger legal footing, ensuring their cryptocurrencies are recognized as assets protected under Indian law.
Jurisdiction and investor protection
The Court also addressed jurisdictional issues, dismissing WazirX’s argument that Singapore arbitration rules applied because its parent company, Zettai Pte Ltd, is based in Singapore.
Justice Venkatesh relied on 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 within India.
Because the investor’s transactions originated in Chennai and involved an Indian bank account, the Court confirmed the matter fell squarely within Indian jurisdiction.
The court further pointed out that Zanmai Labs Pvt Ltd, which operates WazirX in India, is registered with the Financial Intelligence Unit (FIU), unlike its foreign parent or other international platforms.
This distinction reinforced that exchanges operating domestically are subject to India’s oversight and accountability, particularly in safeguarding user assets and maintaining transparent custodial practices.
Strengthening Web3 governance
Justice Venkatesh’s ruling went beyond individual relief and called for higher corporate governance standards in the Web3 and crypto sectors.
He urged exchanges to segregate customer funds, conduct independent audits, and implement robust KYC and anti-money laundering controls.
The Court noted these measures are essential to build trust in the digital economy and protect consumers from future mismanagement of assets.
Legal experts praised the judgment as a milestone in the development of “crypto jurisprudence” in India.
Vikram Subburaj, CEO of Indian exchange Giottus, described it as a foundational moment signaling to all market participants—exchanges, users, and regulators—that the digital asset space will be subject to strong governance and protection standards.
A foundation for India’s crypto future
The Court’s decision not only safeguards individual investor rights but also strengthens the broader regulatory framework around digital assets.
By recognizing cryptocurrency as property, the ruling fills a critical legal gap in a country where crypto taxation has been strict while investor protections lagged.
As Justice Venkatesh wrote, courts now serve as “the central forum where the future of digital value will be litigated.”
Through this judgment, the Madras High Court has given India clearer guidance on ownership, accountability, and trust in the era of decentralization.
With cryptocurrency now firmly recognized as property under Indian law, the decision marks a turning point for the country’s digital asset ecosystem, affirming that crypto holdings in India are not merely speculative instruments but assets protected by law.