- Madras High Court bars WazirX from using XRP to offset hack losses.
- Significant ruling affirming cryptocurrency as property in India.
- Protection strengthens user rights in digital assets.
The Madras High Court in India prevented WazirX from using a customer’s XRP holdings to offset losses from a July 2024 hack, reinforcing cryptocurrency ownership rights.
This decision underscores the recognition of crypto as property, potentially influencing exchange regulations and user protection standards across India’s digital assets market.
The Madras High Court issued a ruling against India’s largest cryptocurrency exchange, WazirX, prohibiting the use of a customer’s XRP holdings to balance losses from a hack. This decision affirms user ownership of digital assets under Indian law. A strong endorsement of this view came from Justice N. Anand Venkatesh, who stated,
“Cryptocurrency is property capable of being enjoyed, possessed, and held in trust.”You can view the judgment status for case number 1267542 for more details.
The case, brought by Rhutikumari, challenged WazirX’s proposal to redistribute losses after a July 2024 hack. Justice N. Anand Venkatesh of the Madras High Court clarified the legal status of cryptocurrency, establishing it as property in India. This decision impacts the legal, regulatory, and financial landscapes, ensuring individual users’ digital assets are protected. Rhutikumari expressed her relief, saying,
“My assets were purchased prior to the hack and should not be redistributed as part of loss socialization.”
The court ruling has prompted a clarification of cryptocurrency as a trust asset, leading to increased fiduciary obligations for exchanges in India. This could influence regulatory measures, boosting confidence in digital asset protection. The ruling underscores the need for clear crypto property rights, encouraging regulatory development. The protection granted by the Indian legal system may establish new standards for cryptocurrency governance and support consumer rights.
Future implications could see increased enforcement of property laws in digital assets, aligning with international legal precedents. This may benefit the cryptocurrency market with enhanced regulatory clarity and protection for stakeholders in India.
