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In a groundbreaking judgment, the Madras High Court has officially recognized XRP and other cryptocurrencies as property under Indian law. Justice N. Anand Venkatesh ruled that cryptocurrencies are identifiable, movable, and manageable assets governed through private keys—making them a unique category of digital property.
The ruling stems from a case involving a cyberattack on India’s leading crypto exchange, WazirX, operated by Zanmai Labs Pvt. Ltd. In January last year, an investor purchased 3,532.30 XRP tokens worth ₹1,98,516. Following a major hack in July that led to $230 million in stolen Ethereum and ERC-20 tokens, WazirX froze several user accounts, including the investor’s. Despite the platform later reopening deposits, users alleged that their funds remained inaccessible.
The investor argued that her XRP holdings were distinct from the stolen Ethereum assets and were merely held in trust by WazirX. She filed for protection under Section 9 of the Arbitration and Conciliation Act, 1996, seeking to prevent redistribution of her XRP tokens. Zanmai Labs countered by claiming its Singapore-based parent company, Zettai Pte Ltd, was bound by a Singapore court order requiring all users to share the hack-related losses.
Justice Venkatesh rejected WazirX’s jurisdictional claim, ruling that the XRP tokens were unaffected by the hack, which only targeted Ethereum-based assets. He emphasized that Section 2(47A) of the Income Tax Act, 1961 classifies cryptocurrencies as virtual digital assets, granting them status as quantifiable property. The court affirmed that digital assets in India are not speculative but represent legitimate property rights with measurable ownership value.
By asserting that Indian courts hold jurisdiction when transactions involve Indian bank accounts, Justice Venkatesh’s decision marks a milestone for crypto regulation in India—solidifying the legal recognition of cryptocurrencies as tangible property under Indian law.
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