What happened?
The Madras High Court ruled that cryptocurrencies are “property capable of being possessed and held in trust,” giving them formal legal recognition in India. This decision came after a user, Rhutikumari, sued WazirX when the exchange froze her 3,532.30 XRP following a $235 million hack and a plan to “socialize” losses. The court stopped WazirX from touching her XRP and ordered the exchange to provide a bank guarantee of about $11,500 while the case continues.
Who does this affect?
Crypto holders in India are directly affected because their coins may now have the same legal protections as other types of property in disputes with exchanges. Exchanges and platforms could face more legal scrutiny and tighter obligations before freezing or reallocating customer funds. Investors in XRP and other tokens, legal teams, and regulators worldwide will also be watching closely since this sets a potential precedent for similar cases elsewhere.
Why does this matter?
Giving crypto clear property status cuts through legal uncertainty, which can boost investor confidence and make people more willing to hold and trade tokens like XRP. That increased confidence could lift demand, trading volume, and potentially prices, while forcing exchanges to improve custody and risk management. Over time, clearer rules in a big market like India could draw institutional capital, speed up adoption, and influence how global markets and regulators treat crypto.