Overview
- Justice N. Anand Venkatesh held that digital tokens meet the legal tests of property and can be held in trust, citing Supreme Court precedent and Section 2(47A) of the Income Tax Act on virtual digital assets.
- The injunction bars Zanmai Labs from redistributing a customer’s 3,532.30 XRP under a proposed loss‑sharing plan, with the judge noting the July 2024 hack targeted ERC‑20 assets, not XRP.
- The court rejected jurisdictional objections tied to Singapore arbitration and restructuring, finding a domestic nexus through Chennai‑based transactions and relying on PASL Wind Solutions precedent.
- Zanmai Labs, registered with India’s Financial Intelligence Unit, was directed to furnish a bank guarantee or escrow of Rs 9.56 lakh to maintain the tokens’ value until the arbitral process concludes.
- The ruling urges stronger exchange governance—segregated client funds, independent audits, and robust KYC/AML—and signals that user assets should not be pooled in restructurings without clear contractual basis.