Dear Reader, it is with the utmost gravity and a dash of bemusement that we inform you the Madras High Court has deemed cryptocurrency a form of property, thereby elevating it from mere speculative folly to the esteemed ranks of tangible assets. 🏛️💸
Summary
- The Madras High Court, ever the arbiter of propriety, has declared that cryptocurrency is indeed a form of property, much to the delight of those who have long suspected their digital coins might hold more value than mere speculation. 🎩💰
- The ruling, born of a most unfortunate case tied to WazirX’s $230M Ethereum hack, has left the financial world in a state of both confusion and cautious optimism. ⚖️💸
- The Court, ever the guardian of order, urged stricter Web3 governance, reminding platforms that even in the digital realm, proper conduct is expected. 🧑⚖️💻
Justice N Anand Venkatesh, with the solemnity of a man who has seen too much, declared that crypto may be owned and held in trust, a notion as bewildering as it is groundbreaking. The case, involving the WazirX exchange, has left investors pondering whether their XRP coins are truly their own or merely a figment of a hacker’s imagination. 🕵️♂️🔐
An investor, having purchased 3,532.30 XRP (XRP) coins worth Rs 1,98,516 in January 2024, sought legal recourse after WazirX froze accounts following a July cyberattack that cost the platform $230 million in Ethereum and ERC-20 tokens. One might say the investor’s plight is a tale as old as time-except with more private keys and fewer quills. 📜🔒
Court Defines Crypto Property Rights
Justice Venkatesh, with the precision of a woman who has never met a paradox she could not resolve, explained that cryptocurrencies possess all the main features of property. “There can be no doubt that ‘cryptocurrency’ is a property,” he proclaimed, “it is not a tangible property, nor is it a currency. It is a property, which is capable of being enjoyed and possessed (in a beneficial form). It is capable of being held in trust.” A sentiment as profound as it is perplexing. 🧠💫
The judge noted that cryptocurrencies are identifiable, transferable, and controlled through private keys, a system so convoluted it would make even the most ardent admirer of Jane Austen’s letters weep with frustration. He referenced Section 2(47A) of the Income Tax Act, 1961, which classifies cryptocurrencies as “virtual digital assets”-a term as vague as a Regency-era ballroom. 📚🌀
The Court dismissed Zanmai Labs’ argument that the investor should share losses from the hack, a decision as surprising as a sudden rainstorm at a country picnic. Justice Venkatesh pointed out that the investor’s XRP coins were separate from the stolen Ethereum-based tokens, a distinction as clear as mud but far more legally significant. 🌧️⚖️
“What were held by the applicant as cryptocurrencies were 3532.30 XRP coins. What were subjected to cyber attack on 18.7.2024 in the WazirX platform were ERC 20 coins, which are completely different crypto currencies,” the Court observed, a statement so meticulously precise it could only have been delivered by a man who has never once misplaced his spectacles. 🔍📜
Indian Courts Hold Jurisdiction Over Domestic Crypto Assets
The Court, ever the stickler for protocol, rejected claims that Singapore arbitration rules prevented Indian court intervention. Justice Venkatesh cited the Supreme Court’s decision in PASL Wind Solutions Pvt Ltd v. GE Power Conversion India Pvt Ltd (2021), confirming that Indian courts can protect assets located in India. A reminder that even in the digital age, one’s legal troubles are best handled at home. 🏡⚖️
The investor’s transactions originated in Chennai and were made using an Indian bank account, placing the case under the jurisdiction of the Madras High Court. Justice Venkatesh noted that Zanmai Labs is registered with India’s Financial Intelligence Unit, unlike its Singapore parent company Zettai Pte Ltd-a fact as damning as a scandal in a drawing room. 🧾🕵️♀️
The judge called for Web3 platforms to maintain corporate governance standards, including separate client funds, independent audits, and strong KYC and anti-money laundering protocols. A plea as noble as it is likely to be ignored by those who thrive on chaos. 🧩🔒
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2025-10-26 22:21