Madras HC Orders WazirX to Secure $11.8K in XRP Dispute
Madras High Court has ordered WazirX to secure a bank guarantee of 956,000 rupees (around $11,800) in an XRP dispute stemming from a $235 million July 2024 hack. Justice N. Anand Venkatesh granted interim relief under the Arbitration and Conciliation Act, ruling that 3,532 XRP tokens remain the property of the user and cannot be used to offset platform losses. The court also recognised cryptocurrency as protected property, limiting WazirX’s proposed socialisation of hack losses model. WazirX, owned by Singapore-based Zettai, must either deposit the funds in escrow or obtain a bank guarantee while arbitration continues. Under a Singapore court–approved restructuring plan supported by over 95% of creditors, WazirX is set to resume services from October 24. This ruling sets a legal precedent for asset recovery and may influence how exchanges handle customer claims post-hack.
Bullish
This ruling is bullish for XRP traders, as legal recognition of XRP as protected property and a clear asset recovery framework reduce regulatory uncertainty. In the short term, securing a guarantee may constrain WazirX’s liquidity but ensures users regain assets. In the long run, the precedent strengthens exchange accountability, enhances investor confidence, and could support increased XRP trading volume and price stability.