Indian Judge Halts WazirX’s XRP Reallocation Plan Linked to 2024 Hack

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Indian Judge Halts WazirX’s XRP Reallocation Plan Linked to 2024 Hack The Madras High Court granted interim protection to a WazirX user, blocking the exchange from redistributing her XRP as part of its Singapore-led restructuring. By Shaurya Malwa | Edited by Oliver Knight Updated Oct 27, 2025, 8:54 a.m. Published Oct 27, 2025, 8:54 a.m. Indian flag (Naveed Ahmed/Unsplash) What to know : The Madras High Court has ruled that cryptocurrency can be held in trust, providing relief to a WazirX user with frozen XRP funds. This decision may influence how Indian courts address user claims against exchanges under foreign jurisdictions. The ruling underscores that cryptocurrency belongs to the user and not the exchange, setting a potential precedent for future cases. The Madras High Court has recognized cryptocurrency as property capable of being held in trust, granting relief to a WazirX user whose XRP funds were frozen following the exchange’s 2024 hack. The ruling could set a precedent for how Indian courts handle user claims against exchanges operating under foreign jurisdictions. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . Justice N. Anand Venkatesh’s Oct. 25 order directed Zanmai Labs, WazirX’s Indian operator, to furnish a bank guarantee worth roughly 9.56 lakh (around $11,500), equivalent to the petitioner’s frozen 3,532 XRP, pending arbitration. “The cryptocurrency was held by her in India by means of the WazirX platform,” the court said. “Cryptocurrency is a property… capable of being enjoyed and possessed, and capable of being held in trust.” The decision came after Rhutikumari, a long-time WazirX user, challenged the exchange’s right to redistribute her XRP holdings under a “socialized loss scheme” tied to its Singapore-based parent Zettai Pte Ltd’s restructuring. WazirX, once India’s largest crypto exchange, halted withdrawals in July 2024 after a $230 million hack targeting wallets managed by Singapore custodian Liminal. The company then pursued a court-supervised restructuring in Singapore, under which users would receive “recovery tokens” and partial repayments once operations resumed. That plan — approved by the Singapore High Court earlier this month — has since become the cornerstone of WazirX’s relaunch. But the Madras ruling signals that Indian users may still seek domestic legal protection even when the company’s legal seat lies abroad. For thousands of Indian users still waiting for their tokens from the 2024 WazirX hack, the Madras decision marks the first tangible win. It doesn’t force WazirX to return funds yet, but it acknowledges a principle that may define future cases: That crypto belongs to the user, not the exchange. WazirX XRP India More For You OwlTing: Stablecoin Infrastructure for the Future By CoinDesk Research Oct 16, 2025 Commissioned by OwlTing Stablecoin payment volumes have grown to $19.4B year-to-date in 2025. OwlTing aims to capture this market by developing payment infrastructure that processes transactions in seconds for fractions of a cent. View Full Report More For You Mt. Gox Delays Creditor Repayment to October 2026 By Omkar Godbole 39 minutes ago Mt. Gox has extended the creditor repayment deadline by a year. What to know : Mt. Gox has extended the creditor repayment deadline to Oct. 31, 2026, from the previous deadline of Oct. 31, 2025. The Rehabilitation Trustee, with court approval, aims to complete repayments as reasonably practicable. Most main repayments have been completed for creditors who met the necessary conditions without issues. Read full story Latest Crypto News Mt. Gox Delays Creditor Repayment to October 2026 39 minutes ago Alibaba Affiliate Ant Group Files ‘AntCoin’ Trademark in Hong Kong, Hinting at Crypto Ambitions 2 hours ago Restoring Privacy to ZEC on Solana via Encifher 2 hours ago Japan's New Yen Stablecoin is Asia’s Only Truly Global Fiat-Pegged Token 3 hours ago Dogecoin Breaks Multi-Month Range as $0.21 Resistance Flips to Support 3 hours ago XRP’s Clean Technical Break Repositions Bulls for $2.80 Push 4 hours ago Top Stories Japan's New Yen Stablecoin is Asia’s Only Truly Global Fiat-Pegged Token 3 hours ago Gold’s Pause is Bitcoin’s Pulse as Risk Appetite Returns Ahead of the Fed Week 18 hours ago Asia Morning Briefing: Bitcoin Holds Above $114K as Whales Absorb Supply and Shorts Rebalance 7 hours ago Bitcoin Surpasses 50-Day Average, but CoinDesk BTC Trend Indicator Remains Bearish 4 hours ago XRP Ledger Validator Sees NFT-to-NFT Trading Potential in Proposed 'Batch' Amendment 17 hours ago Bitmine’s Tom Lee Sees Crypto Rally Into Year-End, Says S&P 500 Could Climb Another 10% Oct 25, 2025