Archive · 27 Oct 2025
Madras HC Recognizes Cryptocurrency as Property Following Cyberattack
Imagine you have some digital money called cryptocurrency, like XRP coins.
A person named Rhutikumari had some of these coins on a trading platform called WazirX, which was like an online bank.
Then, a cyberattack happened, and her account was frozen.
Rhutikumari asked the Madras High Court for help.
The court decided that cryptocurrency is a type of property, like a house or a car, even though it's not physical money.
This means the court will protect it.
The court also ordered WazirX to provide money to cover Rhutikumari’s assets until the case is resolved.
This decision clarified the legal status of digital money in India and offered protection to investors.
The Madras High Court declared cryptocurrency as property.
The ruling came in response to a cyberattack case involving the WazirX exchange.
The court referenced the Income Tax Act, which recognizes cryptocurrency as a virtual digital asset.
The court considered international legal precedents from countries like the UK, USA, and Singapore.
The court granted interim relief to the plaintiff, securing her crypto assets.
- Who
- Madras High Court
- What
- Recognized cryptocurrency as property.
- When
- October 25, 2024
- Where
- India (Madras High Court)
- Why
- To provide clarity on the legal status of crypto assets and offer protection in cyberattack cases.
Investor's Perspective
Exchange's Perspective
Custodial Responsibility
Investor's Perspective
Cryptocurrency exchanges, like WazirX, hold a fiduciary duty to users, to protect their assets.
Exchange's Perspective
The WazirX platform does not hold virtual digital assets in a custodial capacity.
Jurisdiction
Investor's Perspective
The plaintiff's assets are located in India, warranting interim relief under Section 9 of the Arbitration Act.
Exchange's Perspective
The dispute should be resolved in Singapore due to the user agreement's dispute resolution clause.
- Court
- Madras High Court
- Date of Order
- October 25
- Case Involves
- Cyberattack on WazirX exchange
- Plaintiff
- Rhutikumari
- Defendant
- Zanmai Labs (WazirX)
- Asset in Dispute
- 3,532.30 XRP coins