Crypto Court Case: What's Happening with WazirX and XRP?

In a recent turn of events, an Indian court has made a decision that could change how crypto exchanges deal with user claims after a hack. The High Court of Judicature at Madras asked WazirX, a popular crypto exchange, to provide a bank guarantee of around $11,800. This is part of a legal fight where a user is claiming ownership of 3,532 XRP tokens that were frozen after a big cyberattack in 2024.

Court's Stance on Crypto as Property

The court ruled that, due to the hack, there aren't enough crypto tokens left to pay back all the users who lost money. To address this, the company behind WazirX, Zanmai Lab, proposed a plan. They aim to use a legal process in Singapore to fairly distribute the remaining assets to users. The court also emphasized that crypto is considered property, meaning it can be owned and protected by law.

Complex Legal Landscape

This situation is complicated because WazirX is based in India, while its parent company, Zettai, is in Singapore. This dual jurisdiction makes the legal process for users to recover their funds less straightforward. Recently, WazirX announced it would resume operations after being closed for over a year, gradually reintroducing services, starting with trading.

Singapore's Legal Process

After the 2024 hack, Zettai collaborated with Singapore's legal system to devise a repayment plan for affected users. The Singapore court approved this plan in October, offering users hope after a long wait. However, the new decision from the Indian court raises questions about how this will impact Zettai's plan, especially since many WazirX users are in India.