Indian court rules that crypto assets are property, prohibiting WazirX from reallocating users' XRP assets.

According to Deep Tide TechFlow news on October 27, as reported by Decrypt, the Madras High Court in India ruled on Friday that Crypto Assets constitute property protected by the constitution, preventing WazirX from redistributing user assets under its restructuring plan in Singapore.

Judge N. Anand Venkatesh issued an injunction to protect 3,532 XRP coins, rejecting the exchange's proposal for “loss socialization” after the $234 million hack in July 2024. The judge stated that while Crypto Assets “are neither tangible property nor currency,” they “are a form of property that can be enjoyed and owned in a beneficial manner.”

The ruling established the legal status of Crypto Assets as property and stipulated that assets held by exchanges must be regarded as client trust property. The court also rejected WazirX's argument that the Singapore court-approved restructuring automatically bound Indian users. Currently, users have only received 30% of the expected funds.