An Indian court has introduced a ruling that could influence how cryptocurrency exchanges deal with user complaints after a security breach.
The case focuses on WazirX, a crypto trading platform, and its response to a user dispute regarding digital assets affected by a 2024 hack.
The Madras High Court, through Justice N. Anand Venkatesh, directed WazirX’s operator, Zanmai Lab, to offer a financial guarantee of roughly $11,800.
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This decision is part of an ongoing arbitration between the company and a user who held over 3,500 XRP
According to the court filing, the company currently does not have enough cryptocurrency to fully repay all affected users.
To address this, WazirX’s parent company, Zettai, registered in Singapore, has proposed a plan. This plan, made under Singapore law, would allow for the organized return of assets under court supervision.
As part of the judgment, the court also stated that cryptocurrency can be treated as property. This means digital tokens can be owned, used, and managed in trust, similar to traditional financial assets.
The recognition may open up more legal options for users seeking to recover their funds in future disputes.
Recently, WazirX announced plans to resume services on October 24 after being offline for over a year. What did CEO Nischal Shetty say? Read the full story.
