Indian court bars WazirX from using customer XRP to offset hack losses
An Indian court granted interim protection to an XRP holder, preventing WazirX from using their assets to cover platform losses.Summary
The Madras High Court issued an interim protection order against the crypto exchange WazirX, preventing it from reallocating a customer's 3,532 XRP holdings (valued at $9,400) to absorb losses from a major exploit. WazirX had planned a "socialization of losses" approach, requiring all users to absorb some losses, even if their tokens were unaffected by the July 2024 hack, which involved ERC-20 tokens. The judge ruled that the user's XRP, purchased before the hack, constitutes property and should not be diluted to cover operational failures, as XRP is fundamentally different from the stolen ERC-20 tokens. Pending arbitration, the court directed WazirX to provide a bank guarantee or deposit approximately $11,500 into an escrow account for the user's protection.
(Source：The Block)