Madras High Court Recognizes XRP as Property in WazirX Cyberattack Case
- The Madras High Court ruled that XRP and other cryptocurrencies are classified as property under Indian law.
- An investor purchased 3,532.30 XRP coins for ₹1,98,516 before the WazirX exchange was hacked, resulting in losses of approximately $230 million in Ethereum assets.
- Justice N. Anand Venkatesh stated that cryptocurrencies are distinct digital assets with ownership rights and should not be viewed as speculative investments.
- The court affirmed its jurisdiction over the case due to the involvement of an Indian bank account for the transaction.
- Zanmai Labs must adhere to corporate governance principles, including separating client funds and conducting independent audits.
This ruling marks a significant development in how digital assets are recognized legally in India, emphasizing their status beyond mere speculative instruments. The court’s decision underscores the need for robust governance and regulatory frameworks within the cryptocurrency industry.
With this ruling, Justice Venkatesh clarified that the investor’s XRP holdings were unaffected by the hack impacting Ethereum tokens, reinforcing their legal protection under Indian law. (Source)
