- The Madras High Court confirms that cryptocurrencies can be owned and held in trust.
- WazirX was barred from redistributing unaffected investor XRP holdings.
- The ruling strengthens investor rights and Web3 governance in India.
In a historic judgment that could reshape cryptocurrency law in India, the Madras High Court has ruled that cryptocurrencies qualify as property under Indian law.
Delivered by Justice N. Anand Venkatesh, the Court’s decision states that cryptocurrencies can be owned, held in trust, and protected as legal property — a major step toward clarifying the legal status of digital assets in the country.
Cryptocurrencies in India are now recognized as property
The case arose from a petition by an investor whose 3,532.30 XRP tokens were frozen after a cyberattack on WazirX, one of India’s largest cryptocurrency exchanges.
In July 2024 the platform suffered a $234 million hack that involved Ethereum and ERC‑20 tokens.
Although the investor’s XRP holdings were not part of the stolen assets, WazirX attempted to reallocate all user funds under its so‑called “loss socialization” plan.
Justice Venkatesh firmly rejected that proposal, holding that each investor’s digital holdings constitute individual property and cannot be diluted or redistributed to cover exchange losses.
He emphasized that, while intangible, cryptocurrencies possess the key attributes of property — they are identifiable, transferable, and controlled exclusively via private keys.
“It is neither tangible property nor currency,” the judge observed. “Nevertheless, it is property that can be enjoyed and possessed in a beneficial form.”
This interpretation gives digital asset holders stronger legal standing, ensuring their cryptocurrencies are recognized as assets protected by Indian law.
Jurisdiction and investor protection
The Court also resolved questions of jurisdiction, dismissing WazirX’s argument that Singapore arbitration rules applied because the parent company, Zettai Pte Ltd, is based in Singapore.
Justice Venkatesh cited 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 the matter squarely within Indian jurisdiction.
The bench further noted that Zanmai Labs Pvt Ltd, which operates WazirX in India, is registered with the Financial Intelligence Unit (FIU) — distinct from the foreign parent company or other international exchanges.
This distinction reinforced that exchanges operating domestically are subject to Indian oversight and accountability, particularly in safeguarding user assets and maintaining transparent custody practices.
Strengthening Web3 governance
Justice Venkatesh’s ruling went beyond individual relief, calling for higher standards of corporate governance across the Web3 and crypto sectors.
He urged exchanges to maintain segregated client funds, conduct independent audits, and implement robust KYC and anti‑money‑laundering controls.
The Court noted these measures are essential to bolster trust in the digital economy and to protect consumers against future mismanagement of assets.
Legal experts have welcomed the decision as a milestone in the development of crypto jurisprudence in India.
Vikram Subburaj, CEO of Indian exchange Giottus, described it as a defining moment signaling to market participants — exchanges, users, and regulators — that the digital asset space will be held to strong governance and protection standards.
A foundation for India’s crypto future
The judgment not only safeguards individual investors’ rights but also reinforces the broader regulatory framework surrounding digital assets.
By recognizing cryptocurrencies as property, the ruling closes a critical legal gap in a country where crypto taxation remains stringent while investor protection has lagged.
As Justice Venkatesh wrote, the courts now serve as “the central forum where the future of digital value is debated.”
With this verdict, the Madras High Court has given India clearer guidance on ownership, accountability, and trust in the age of decentralization.
By firmly recognizing cryptocurrencies as property under Indian law, the decision marks a turning point for the country’s digital asset ecosystem — affirming that in India, crypto holdings are not merely speculative instruments but legally protected assets.