CRYPTOCURRENCY RECOGNISED AS PROPERTY UNDER INDIAN LAW: Madras High Court’s Landmark Ruling
- prime8legal
- Oct 29
- 3 min read
OVERVIEW OF THE JUDGEMENT
In a landmark judgment, the Madras High Court has held that cryptocurrency qualifies as “property” under Indian law, and therefore, victims of crypto scams can invoke provisions of the Indian Penal Code (IPC) to recover their losses.
Delivered in October 2025 by Justice Senthilkumar Ramamoorthy, this ruling marks a turning point in India’s evolving digital finance jurisprudence. It clarifies that even though India is yet to legislate a comprehensive crypto law, existing laws—such as the IPC and the Information Technology Act—can still offer protection against fraud, misappropriation, or cheating involving digital assets.
KEY HIGHLIGHTS OF THE JUDGEMENT
🧾 Court: Madras High Court
⚖️ Coram: Justice Senthilkumar Ramamoorthy
📅 Date: October 2025
📍 Case Context: Victim of cryptocurrency fraud sought restitution of funds invested in a digital token project.
💡 Ruling: Cryptocurrency falls within the definition of “property” under Section 2(c) of the Benami Transactions (Prohibition) Act and can be subject to protection under Sections 405, 406, 420 IPC (criminal breach of trust, cheating, and misappropriation).
🪙 Impact: Victims can now file FIRs, initiate recovery suits, and claim compensation under existing criminal and civil laws.
DETAILED LEGAL ANALYSIS
The Madras High Court drew a fine distinction between the legality of cryptocurrency trading and the property status of cryptocurrency. While trading in crypto may still be subject to RBI or legislative scrutiny, the Court clarified that ownership rights over cryptocurrency are enforceable, much like any other movable asset.
Justice Ramamoorthy observed:
“Even in the absence of statutory regulation, cryptocurrency represents a store of value and can be legally protected from unlawful deprivation.”
The Court also referred to international jurisprudence—including rulings from Singapore, the UK, and the EU—where digital tokens have been treated as intangible property. The judgment aligns Indian law with this global standard, reinforcing judicial readiness to adapt existing legal frameworks to technological realities.
This recognition is crucial in curbing the misuse of crypto transactions for Ponzi schemes, rug pulls, or deceptive initial coin offerings (ICOs).
GENERAL IMPLICATIONS FOR BUSINESSES AND INVESTORS
This ruling strengthens India’s legal foundation for digital assets in multiple ways:
Crypto Frauds Now Punishable: Victims can rely on IPC provisions against cheating and misappropriation.
Increased Due Diligence: Exchanges and custodial wallets will need stronger compliance and KYC protocols.
Civil Remedies for Recovery: Cryptocurrency can be attached or liquidated as property in civil recovery proceedings.
Corporate Protection: Companies can include crypto clauses in contracts for transactions or investments.
Regulatory Signal: The judgment implicitly pushes the government towards drafting comprehensive crypto regulation.
HOW PRIME 8 LEGAL CAN HELP
At Prime 8 Legal, we assist clients in navigating the complex intersection of digital finance, fraud recovery, and technology law.Our team helps with:
Filing FIRs or private complaints for crypto scams under Sections 405, 406, 420 IPC.
Drafting recovery suits and injunction applications in cryptocurrency fraud cases.
Advising startups, investors, and businesses on compliance in digital asset transactions.
Liaising with cybercrime units and blockchain forensic experts for asset tracing.
FAQs on Cryptocurrency Recognised as Property Under Indian Law
Q1. What does it mean that cryptocurrency is recognised as property?
It means cryptocurrency is treated like movable property, such as gold or stocks, and ownership is legally protected under Indian law.
Q2. Can victims of crypto fraud file criminal cases now?
Yes. They can initiate proceedings under Sections 406 (criminal breach of trust) and 420 (cheating) of the IPC.
Q3. Does this judgment legalise cryptocurrency trading in India?
No. The judgment only clarifies the property status of crypto; it does not legalise trading or override RBI’s regulatory stance.
Q4. Can cryptocurrency be attached in civil suits?
Yes, courts can treat crypto holdings as attachable property for recovery in civil disputes.
Q5. How does this affect foreign investors or companies operating in India?
It offers a clearer legal framework for protecting digital investments and asserting proprietary claims in Indian courts.
Contact Prime 8 Legal
If you or your business are facing a legal dispute or need guidance, Prime 8 Legal’s experienced legal team can assist in protecting your interests in India and abroad.
📍 Address: 318-B, Saraswati Kunj, Sector 53, Golf Course Road, Gurgaon 122003, India
📞 Phone: +91-9717586165
✉️ Email: prime8legal@gmail.com
🌐 Website: www.prime8legal.com
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