In a landmark ruling, the Madras High Court has declared that cryptocurrency qualifies as “property” under Indian law — a decision that gives digital assets legal standing in ownership, trust, and judicial protection.
Justice N Anand Venkatesh ruled on Saturday that while cryptocurrencies like XRP are neither physical assets nor legal tender, they exhibit all the core features of property.
“It is not a tangible property nor is it a currency. However, it is a property, which is capable of being enjoyed and possessed… capable of being held in trust,” he stated.
The judgment came in response to a petition from an investor whose 3,532.30 XRP tokens — worth ₹1.98 lakh — were frozen after a major cyberattack on crypto exchange WazirX in July 2024. The hack, which targeted Ethereum and ERC-20 tokens, caused a reported $230 million loss and led to account freezes across the platform.
The petitioner argued that her XRP holdings were distinct from the stolen tokens and should be protected under Section 9 of the Arbitration and Conciliation Act, 1996. She sought legal safeguards to prevent WazirX, operated by Zanmai Labs Pvt Ltd, from redistributing her funds.
Zanmai Labs countered by citing a Singapore court-mandated restructuring process initiated by its parent firm, Zettai Pte Ltd. The company claimed the ruling required all users to bear losses collectively. But Justice Venkatesh rejected that argument, noting the investor’s assets were not part of the breach. “What were subjected to cyber attack… were ERC 20 coins, which are completely different crypto currencies not held by the applicant,” he clarified.
The Court also dismissed jurisdictional objections, citing the Supreme Court’s ruling in PASL Wind Solutions v. GE Power Conversion India (2021), which permits Indian courts to protect assets within the country. Since the investor’s transactions originated in Chennai and involved an Indian bank, the case rightfully fell under the Madras High Court’s domain.
Justice Venkatesh further invoked Section 2(47A) of the Income Tax Act, which categorises cryptocurrencies as “virtual digital assets” — reinforcing their legal recognition. He also urged stricter governance for Web3 platforms, including independent audits, client fund segregation, and robust KYC/AML compliance.
