XRP gets legal recognition as ‘property’ in India

In a swift interim order that has sent ripples through India’s crypto community, the Madras High Court on October 25 declared XRP and similar digital currencies to be “property capable of being possessed and held in trust,” marking the first time a high court has granted cryptocurrencies clear legal status as ownable assets under Indian law.

Justice N. Anand Venkatesh delivered the ruling in a case filed by Rhutikumari, a Coimbatore school administrator whose 3,532.30 XRP—worth roughly $9,400—was frozen after WazirX suffered a $230 million hack in July 2024.

The exchange had sought to reorganize user assets under a Singapore-approved scheme, arguing that Indian courts lacked jurisdiction, but the judge rejected that claim, pointing out that the petitioner funded and accessed her account entirely within India using an Indian bank and domestic internet connection.

XRP, the court emphasized, is not a speculative gamble but an intangible asset whose ownership is secured by private keys, deserving the same protections as cash, gold, or real estate. As immediate relief, the court barred WazirX’s Indian entity, Zanmai Labs, from reallocating Rhutikumari’s holdings and ordered a bank guarantee of approximately $11,500 to safeguard her claim.

The decision provides a powerful precedent for thousands of WazirX users still locked out of their funds and is expected to pressure regulators to finally define digital assets in national policy.

For context, XRP is the native token of the XRP Ledger, an open-source blockchain developed by San Francisco-based Ripple Labs, designed primarily for fast and low-cost cross-border payments.

Rhutikumari, who never intended to make legal history, simply wanted her coins returned—and in doing so, she has handed every crypto holder in India a stronger legal shield.

Signpost NewsDesk

Signpost News is an Imphal-based media house that focuses on delivering news and views from Northeast India and beyond.