The Madras High Court ruled on Saturday that WazirX cannot use a user’s 3,532 XRP holdings ($9,400) to offset platform losses after a $230 million hack, granting the investor interim protection, according to the official court order.
The court emphasized that cryptocurrency is property, and XRP owned by the user is distinct from the ERC-20 tokens stolen in the July 2024 exploit. WazirX had proposed a “socialization of losses” plan, which would require all users to absorb part of the losses, but the judge clarified this cannot apply to XRP holders, ensuring their assets remain intact. The exchange was also ordered to provide a bank guarantee of 956,000 rupees (~$11,500) or deposit it in escrow for interim protection.
WazirX resumed operations last week after Singapore’s High Court approved a restructuring plan backed by 96% of creditors. The case highlights ongoing legal recognition of crypto as property in India.
Source: https://mhc.tn.gov.in/judis/index.php/casestatus/viewpdf/1267542
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