It all began with one user’s fight.
An XRP holder named Rhutikumari filed a case against WazirX, one of India’s top crypto exchanges, after her account, holding about 3,532 XRP worth $9,400, was suddenly frozen.
The freeze came after WazirX suffered a major hack in July 2024, losing around $235 million. To manage these losses, the exchange introduced a controversial plan called “socialization of losses”, essentially spreading the financial damage across all users’ accounts. Rhutikumari objected, saying this move violated her right to own and control her assets.
WazirX, however, argued that the matter was governed by a Singapore court-approved restructuring plan, which proposed a compensation process for all users. They also claimed that since their arbitration was based in Singapore, Indian courts lacked jurisdiction.
But the Madras High Court saw it differently.
In a historic interim ruling, Justice N. Anand Venkatesh of the Madras High Court declared that cryptocurrencies like XRP are “property capable of being possessed and held in trust.”
This officially means that, under Indian law, crypto is now recognized as a form of personal property, something you can legally own, protect, and even hold in trust, much like other assets.
The judge referred to Section 2(47A) of the Income Tax Act and cited global cases, such as Ruscoe v. Cryptopia Ltd from New Zealand, to reinforce his reasoning.
Importantly, the court rejected WazirX’s jurisdiction argument, emphasizing that since Rhutikumari used an Indian bank account and accessed the platform from India, the case fell well within Indian legal boundaries.
As temporary relief, the court barred WazirX’s parent company, Zanmai Labs, from reallocating her XRP and ordered them to submit a bank guarantee worth about $11,500 until the case concludes.
This is the first time an Indian High Court has officially recognized crypto as property, giving holders like Rhutikumari clear ownership rights.
In practical terms, it means exchanges can’t just seize or redistribute users’ digital assets during a crisis without consent. Investors now have a legal safety net, as the court treats their crypto holdings as customer-owned property rather than exchange-owned funds.
This recognition is expected to boost investor confidence, particularly in XRP, which was trading around $2.3 at the time. If confidence grows in India, the token could even cross its technical resistance of $2.80.
With this move, India joins countries like the US, UK, and Singapore, where courts already treat crypto assets as property.
This alignment could accelerate India’s push for clearer crypto regulations, encouraging transparency and investor trust.
The court’s recognition gives legal backing to crypto ownership, but it’s still an interim order — not a final law.
Here are a few caveats:
And finally, India still lacks a comprehensive crypto law, so legislative action will be crucial to cement this ruling’s impact.
The Madras High Court’s declaration that XRP is legal property is a watershed moment for India’s crypto community.
It gives investors the confidence that their digital assets have legal recognition and protection, setting the stage for a more secure and transparent crypto ecosystem in the country.
