• Madras High Court declares cryptocurrencies as “property capable of being possessed and held in trust.”
• The ruling came after a dispute over 3,532.30 XRP worth around $9,400 frozen in a WazirX account.
• This marks India’s first formal legal recognition of digital assets as personal property.

The Madras High Court officially recognized cryptocurrencies as “property capable of being possessed and held in trust,” giving them legal standing under Indian law.

The case stemmed from a petition filed by an XRP holder named Rhutikumari, whose account was frozen by Indian exchange WazirX following a $235 million hack in July 2024. Her account held 3,532.30 XRP, worth approximately $9,400.

WazirX had introduced a controversial “socialization of losses” plan, intending to distribute the financial damage from the hack across all users. Rhutikumari opposed this, arguing it violated her ownership rights over her XRP holdings.

In defense, WazirX cited a Singapore High Court-approved restructuring plan and claimed that arbitration should take place in Singapore.

However, the Madras High Court disagreed, ruling that since the petitioner accessed her account and transferred funds from India, domestic jurisdiction applied.

Justice N. Anand Venkatesh ruled that digital assets such as XRP are intangible yet possessible property under Indian law, referencing Section 2(47A) of the Income Tax Act and international judgments, including New Zealand’s Ruscoe v. Cryptopia Ltd.

As interim relief, the court restrained Zanmai Labs, the operator of WazirX, from reallocating the petitioner’s XRP and ordered it to provide a bank guarantee worth about $11,500 until the case concludes.

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XRP Sees Support After India’s New Crypto Decision

This is a pivotal moment in the Indian crypto market. This is because it is the first time that a high court has recognized cryptocurrencies as property in an Indian court of law.

This is a significant moment as it ensures that investors have property rights that cannot be arbitrarily interfered with by anyone.

This is likely to greatly boost investors’ confidence, said crypto attorney Vivek Narayan. It is likely that all exchanges will have to amend their existing custody models and restructure terms in line with property rights.

This is an improvement for investors in XRP as it enhances ownership rights. Currently, it is at a price of $2.23 with a barrier at $2.45, and market analysts feel that it will have a stabilizing effect if it gains full recognition in India.

India Aligns with Global Crypto Property Standards

India is now part of a list of countries, including the US, Britain, and Singapore, that recognize cryptocurrencies as property.

In the US, for instance, it is treated as property that is subject to tax, while in England and Singapore, it enjoys regulatory protection as property in decisions such as AA v. Persons Unknown and ByBit Fintech Ltd v. Ho Kai Xin.

Although it is an interim order, it is a highly precedent-setting decision that will have implications in similar matters in the days to come. This is a clear positive step towards ensuring that ownership arrangements in the digital assets landscape in the country become well-defined.

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