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XRP Dispute Prompts Indian Court to Order WazirX Bank Guarantee After US$235M Hack
- India’s Madras High Court ordered WazirX operator Zanmai Labs to provide an US$11,800 (AU$17,995) bank guarantee in an XRP dispute following a 2024 hack.
- The court recognised cryptocurrency as property and acknowledged user claims under trust, reinforcing its legal standing in India.
- WazirX’s relaunch, under a Singapore-approved restructuring plan, marks the first operational step since the US$235 million (AU$358 million) breach.
India’s Madras High Court has directed Zanmai Labs, operator of the crypto exchange WazirX, to provide a bank guarantee of approximately US$11,800 (AU$17,995) in a dispute involving a user’s frozen XRP tokens. The case arises from a 2024 cyberattack that saw the exchange lose an estimated US$235 million (AU$358 million) in cryptocurrency, leaving thousands of users unable to access their funds.
The order by Justice N. Anand Venkatesh forms part of arbitration proceedings between a user and the exchange concerning 3,532 XRP in custody with Zanmai Labs. The court’s judgment stated that the platform lacked sufficient digital assets to satisfy its unsecured user liabilities following the breach.
To address this, WazirX’s parent company, Zettai Pte Ltd, established a court-supervised restructuring plan under Singapore’s Companies Act to manage repayments. That plan was approved by the Singapore High Court on 13 October 2025, paving the way for affected users to recover assets.
Related: Singapore, UAE Named World’s Most “Crypto-Obsessed” Nations
Crypto Gains Legal Standing in India
In his ruling, Justice Venkatesh recognised cryptocurrency as property that could be possessed and held in trust, a stance that strengthens its legal status under Indian law. This interpretation could prove pivotal in guiding how courts evaluate claims related to digital assets and exchange responsibilities.
Following the court’s order, WazirX resumed trading after more than a year of suspension, marking its first operational step since the July 2024 hack. The platform’s return follows the Singapore-approved restructuring process and includes a relaunch featuring zero-fee trading for users.
The Madras High Court’s directive, combined with Singapore’s ongoing oversight of Zettai’s repayment plan, highlights the growing intersection between domestic and international jurisdictions in handling crypto-related disputes.
Related: Blockchain Gaming Alliance: Stablecoins Are Powering the $350B Gaming Market
Author
Rachel Lourdesamy
Rachel is a freelance writer based in Sydney with experience within financial services, marketing, and corporate communications in the APAC region. An avid reader and a graduate of the University of Sydney, she covers topics including business, finance and human interest.
