Cryptocurrencies have become increasingly popular in India. To transfer and store their cryptocurrencies, users rely on platforms or applications known as crypto exchanges. However, the exact contours of the legal relationship between the users and the exchanges remain unclear. Other jurisdictions have classified this relationship in a variety of different ways such as a trust, debtor-creditor relationship or even creating new innovative concepts like control-based proprietary interest. However, this paper argues that considering the Indian contractual framework, this relationship can be best classified as a bailment. The paper also attempts to provide a normative justification for this claim by highlighting its utility in scenarios where crypto exchanges go insolvent.