Key Takeaways
- The Madras High Court has ruled that cryptocurrencies qualify as “property” under Indian law.
- The judgment stems from a dispute over WazirX’s offshore restructuring after its 2024 hack.
- The decision allows investors to seek legal remedies for frozen or disputed crypto holdings.
In a ruling that could reshape India’s digital asset landscape, the Madras High Court has formally recognized crypto as a form of property, granting it the same legal protection as tangible or financial assets.
The decision, delivered by Justice N. Anand Venkatesh in Rhutikumari v. Zanmai Labs Pvt. Ltd and Ors., is the first in India to extend property rights to crypto holders.
It provides legal clarity in a country where digital asset ownership has remained a gray area for years.
The Case That Changed Everything
The case stemmed from a dispute involving Zanmai Labs, the parent company of Indian crypto exchange WazirX, which has been mired in controversy since a $230 million hack in July 2024 forced the platform to freeze withdrawals for over 16 months.
One investor, Rhutikumari, a Chennai-based user, had deposited roughly INR 200,000 ($2,266) in 2022 to buy 3,532 XRP tokens using her Indian bank account—creating an undeniable domestic link.
After the hack, WazirX moved operations to Singapore as part of its restructuring, leaving many Indian investors without access to their funds.
Frustrated by the lack of resolution, Rhutikumari petitioned the Madras High Court under Section 9 of the Arbitration and Conciliation Act (1996).
She sought interim relief to prevent WazirX from reallocating or distributing her XRP holdings while arbitration was pending.
Her argument was simple: her assets were separate from those stolen in the hack and should be legally protected as her property.
Court: Crypto Is Property, and Investors Deserve Protection
In its judgment, the court dismissed WazirX’s objection that the matter should be handled under Singaporean jurisdiction, ruling that Indian courts have authority when assets are linked to domestic transactions or Indian-registered entities.
Justice Venkatesh leaned on earlier Supreme Court precedents, including Ahmed G.H. Ariff v. Commissioner of Wealth Tax (1970) and Jilubhai Nanbhai Khachar v. State of Gujarat (1995), which defined property as “every possible interest which a person can acquire, hold, and enjoy.”
Applying those principles, he ruled:
“There can be no doubt that ‘cryptocurrency’ is a property. It is not a tangible property, nor is it a currency. However, it is a property that is capable of being enjoyed and possessed (in a beneficial form). It is capable of being held in trust.”
The court also emphasized that Zanmai’s registration with the Financial Intelligence Unit (FIU) distinguishes it from unregulated offshore exchanges, reinforcing India’s jurisdiction over the matter.
What the Ruling Means for India’s Crypto Industry
The judgment has far-reaching implications.
By recognizing crypto as property, the High Court has effectively paved the way for Indian investors to pursue judicial remedies when their assets are frozen, mismanaged, or trapped in cross-border disputes.
It also sets a precedent for insolvency and restructuring cases involving digital assets—an area previously outside India’s legal framework.
For thousands of WazirX users still waiting for recovery after the 2024 hack, the ruling could open a path toward restitution.
More broadly, the decision brings India closer to international norms where courts treat digital assets as property rather than speculative instruments.
Legal experts believe it will pressure regulators and lawmakers to accelerate formal crypto legislation and asset protection frameworks.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
