Madras HC Rules Crypto Property Rights After WazirX Hack
India’s Madras HC has recognised cryptocurrencies as movable property under the Income Tax Act. The judgment strengthens crypto property rights and legal recognition of digital assets. It ruled that tokens like XRP and ETH meet tests for ownership, transferability and exclusive control via private keys. The decision arose from the 2021 WazirX hack, in which $234 million in ETH and ERC-20 tokens were stolen. A user petition sought to protect her 3,532 XRP from the exchange’s pooled compensation fund. Rejecting WazirX’s Singapore arbitration clause, the court asserted Indian jurisdiction over domestic assets and granted interim relief.
This landmark ruling on crypto property rights confirms individual ownership cannot be diluted to cover exchange losses. It may compel exchanges to segregate client funds, tighten record-keeping and meet KYC/AML standards. By aligning cryptocurrency taxation with property law, the verdict could boost legal clarity and confidence for traders and institutions. The order is subject to appeal, marking a key step in India’s evolving cryptocurrency regulation.
Bullish
This ruling provides legal clarity on XRP ownership, reducing custody risk and increasing institutional trust. In the short term, interim relief protecting 3,532 XRP signals that individual assets are safe from exchange recoveries, likely boosting market confidence and buying interest in XRP. In the long term, stronger crypto property rights and mandatory client fund segregation may lower counterparty risk across platforms, encouraging investors to hold XRP. This positive legal precedent in a major market should support XRP’s price momentum and stability, making the outlook bullish.