TechFlow news, October 27 — According to Decrypt, India's Madras High Court ruled on Friday that cryptocurrency constitutes constitutionally protected property, blocking WazirX from redistributing user assets under its Singapore restructuring plan.
Judge N. Anand Venkatesh issued an injunction safeguarding 3,532 XRP tokens, rejecting the exchange's proposed "loss socialization" scheme following a $234 million hack in July 2024. The judge stated that while cryptocurrency is "neither tangible property nor money," it "is property capable of being enjoyed and owned in a beneficial form."
The ruling establishes the legal status of crypto assets as property and mandates that assets held by exchanges must be treated as client trust property. The court also rejected WazirX's argument that its Singapore court-approved restructuring automatically binds Indian users. Users have so far received only 30% of their expected funds.
