Ripple’s XRP Banned From Being Used by WazirX to Cover Platform Losses: Here’s Why

An Indian court has blocked crypto exchange WazirX from reallocating a user’s XRP to cover platform losses. The Madras High Court granted “interim protection,” affirming that the user’s digital assets remain their distinct property under Indian law. The ruling marks a key moment in the country’s evolving crypto jurisprudence.

The case stems from WazirX’s plan to apply a “socialization of losses” model after a $235 million exploit in July 2024. The exchange proposed spreading losses across all users, including those who held cryptocurrencies unrelated to the stolen ERC-20 tokens.