Indian Court Declares XRP as Property in WazirX Hack Case

In a landmark ruling, the Madras High Court in India has declared that XRP and other cryptocurrencies as property under Indian law. The judgment was given by Justice N. Anand Venkatesh. He also pointed out that cryptocurrencies are recognizable, movable, and manageable solely with the help of privatized keys that makes them a unique type of property.

Court Supports XRP Investor, Rejects WazirX’s Singapore Claim

The case was based on a cyberattack on the WazirX exchange, which is operated by Zanmai Labs Pvt Ltd. In January last year, an investor bought 3,532.30 XRP coins with a cost of ₹1,98,516.

WazirX was attacked in July the same year and its visitors lost approximately $230 million worth of Ethereum and ERC-20 tokens. After the breach, this investor’s and other user accounts were frozen. Recently, WazirX reopened deposits but faced widespread backlash from users who claimed their funds were still inaccessible.

The investor argued that her XRP holdings were separate from the stolen Ethereum assets. She further said the tokens were held in trust by the crypto exchange. Hence, she sought legal protection under Section 9 of the Arbitration and Conciliation Act, 1996, to prevent redistribution of her holdings.

Zanmai Labs opposed the request, claiming that its Singapore-based parent company, Zettai Pte Ltd, was under a Singapore court order. According to the firm, the order required all users to share losses from the hack.

Court Affirms Crypto as Property, Asserts Jurisdiction

According to the Financial Express, Justice Venkatesh rejected the exchange’s argument. He ruled that the XRP holdings were not affected by the hack, which only impacted Ethereum-based tokens.

He also argued that the XRP tokens held by the applicant had not been compromised. According to the judge, Section 2(47A) of the Income Tax Act, 1961 states that cryptocurrencies can be defined as virtual digital assets.

He further said that crypto assets in India are no longer considered a form of speculative transaction. Instead, they are digital property that has quantifiable ownership rights. The court’s observation is now a major milestone in the judicial system of India regarding how digital assets are recognized.

In his clarification about the jurisdictional issue, Justice Venkatesh explained that the case can come under the Madras High Court. This is because the transaction by the investor involved a bank account opened in India. He clarified that Indian courts could protect assets located within India even when related arbitration was seated abroad.