Chennai, India — In a paradigm-shifting judgment that reshapes how India’s legal system views digital assets, the Madras High Court has ruled that cryptocurrencies qualify as property under Indian law. The verdict, delivered by Justice N. Anand Venkatesh, establishes that while cryptocurrencies cannot be considered legal tender, they are nonetheless assets capable of ownership, transfer, and legal protection.
Investor’s Petition Leads to Legal Precedent
The case began when an investor approached the court after her 3,532.30 XRP tokens, valued at around ₹1.98 lakh, were frozen by the cryptocurrency exchange WazirX following a major cyberattack in July 2024.
The breach targeted Ethereum and ERC-20 tokens, resulting in an estimated loss of $230 million (approximately ₹1,900 crore) and prompted the platform to impose a blanket freeze on user accounts.
The petitioner argued that her XRP holdings were unrelated to the hacked tokens and should not be subject to the same restrictions. She sought relief under Section 9 of the Arbitration and Conciliation Act, 1996, requesting that Zanmai Labs Pvt. Ltd., the Indian operator of WazirX, be restrained from redistributing or reallocating her digital assets during the ongoing restructuring process.
Zanmai Labs contended that its Singapore-based parent company, Zettai Pte Ltd, was undergoing a court-supervised restructuring that required all users to share losses collectively. However, the High Court rejected this defense, observing that the petitioner’s assets were distinct from the ERC-20 tokens involved in the hack.
Justice Venkatesh ruled that the exchange could not impose collective loss-sharing on unrelated digital assets, noting that “the tokens affected by the cyberattack were ERC-20 coins, which are entirely different from the petitioner’s XRP holdings.”
Court’s Stance: Cryptocurrency as Property
In his judgment, Justice Venkatesh explained that although cryptocurrencies are intangible and do not function as physical goods or official currency, they meet the legal definition of property.
He stated that these assets “can be enjoyed, possessed, and even held in trust,” reinforcing their capability of ownership and protection under law.
To support this interpretation, the court referred to Section 2(47A) of the Income Tax Act, which classifies cryptocurrencies as Virtual Digital Assets (VDAs). This legal category recognizes digital tokens as taxable and transferable assets, strengthening the basis for treating them as property under Indian statutes.
Jurisdiction and Legal Authority
Addressing the question of jurisdiction, the High Court noted that Indian courts have the authority to protect assets located within the country, even if international proceedings are underway. Justice Venkatesh cited the Supreme Court’s 2021 ruling in PASL Wind Solutions v. GE Power Conversion India, which affirmed that Indian courts retain the right to intervene in matters involving domestic assets despite foreign arbitration.
Since the petitioner’s crypto transactions were initiated in Chennai and linked to an Indian bank account, the Madras High Court asserted complete jurisdiction to hear the dispute.
Beyond resolving the individual case, Justice Venkatesh emphasized the urgent need for robust regulatory and governance frameworks for India’s cryptocurrency ecosystem.
The judgment recommended several safeguards to protect users and maintain market integrity, including:
• Independent audits of cryptocurrency exchanges,
• Segregation of customer funds from company finances, and
• Stronger KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance mechanisms.
The court underlined that as India transitions toward a Web3-driven economy, accountability, transparency, and investor protection must remain central to digital asset governance.
Impact on India’s Crypto Industry
Legal and financial experts view the judgment as a turning point in India’s treatment of digital assets.
By recognizing cryptocurrencies as property, the ruling gives investors a clearer legal foundation for ownership rights and judicial remedies in case of disputes. It also urges exchanges to improve corporate governance and adopt transparent practices when managing customer funds.
“This verdict brings long-needed clarity,” said a corporate lawyer specializing in digital finance. “It does not make crypto legal tender, but it ensures that investors’ holdings are legally recognized as assets, something the Indian market has lacked.”
The decision is expected to influence future policy discussions surrounding the Digital India Act and the government’s Virtual Digital Asset Taxation framework, both of which are likely to define how crypto businesses and investors operate in the country.
A Legally Secure Digital Future
By aligning India’s legal reasoning with international trends, the Madras High Court has placed the judiciary at the forefront of global crypto jurisprudence. Similar to rulings in the UK, Singapore, and the United States, this decision formally acknowledges that cryptocurrencies hold measurable economic value and are capable of legal protection.
While the ruling does not alter the Reserve Bank of India’s stance that cryptocurrencies are not legal currency, it does mark a decisive step toward legal maturity in digital asset regulation.
It signals a future where blockchain-based assets will coexist within a structured legal framework, allowing innovation and investor protection to advance together.
The modern internet, though vast and advanced, remains surprisingly delicate. A minor technical fault or human error can disrupt millions of users worldwide, revealing how dependent our lives have become on digital systems.
On October 20, 2025, a technical error in a database service operated by Amazon Web Services (AWS) caused widespread outages across several online platforms. AWS, one of the largest cloud computing providers globally, hosts the infrastructure behind thousands of popular websites and apps. As a result, users found services such as Roblox, Fortnite, Pokémon Go, Snapchat, Slack, and multiple banking platforms temporarily inaccessible. The incident showed how a single malfunction in a key cloud system can paralyze numerous organizations at once.
Such disruptions are not new. In July 2024, a faulty software update from cybersecurity company CrowdStrike crashed around 8.5 million Windows computers globally, producing the infamous “blue screen of death.” Airlines had to cancel tens of thousands of flights, hospitals postponed surgeries, and emergency services across the United States faced interruptions. Businesses reverted to manual operations, with some even switching to cash transactions. The event became a global lesson in how a single rushed software update can cripple essential infrastructure.
History provides many similar warnings. In 1997, a technical glitch at Network Solutions Inc., a major domain registrar, temporarily disabled every website ending in “.com” and “.net.” Though the number of websites was smaller then, the event marked the first large-scale internet failure, showing how dependent the digital world had already become on centralized systems.
Some outages, however, have stemmed from physical damage. In 2011, an elderly woman in Georgia accidentally cut through a fiber-optic cable while scavenging for copper, disconnecting the entire nation of Armenia from the internet. The incident exposed how a single damaged cable could isolate millions of users. Similarly, in 2017, a construction vehicle in South Africa severed a key line, knocking Zimbabwe offline for hours. Even undersea cables face threats, with sharks and other marine life occasionally biting through them, forcing companies like Google to reinforce cables with protective materials.
In 2022, Canada witnessed one of its largest connectivity failures when telecom provider Rogers Communications experienced a system breakdown that halted internet and phone services for roughly a quarter of the country. Emergency calls, hospital appointments, and digital payments were affected nationwide, highlighting the deep societal consequences of a single network failure.
Experts warn that such events will keep occurring. As networks grow more interconnected, even a small mistake or single-point failure can spread rapidly. Cybersecurity analysts emphasize the need for stronger redundancy, slower software rollouts, and diversified cloud dependencies to prevent global disruptions.
The internet connects nearly every part of modern life, yet these incidents remind us that it remains vulnerable. Whether caused by human error, faulty code, or damaged cables, the web’s fragility shows why constant vigilance, better infrastructure planning, and verified information are essential to keeping the world online.