Indian Court Orders Scam Websites Using Crypto Exchange Mudrex’s Name to Be Taken Down

As a researcher with a keen interest in the dynamic world of cryptocurrency and blockchain technology, I find myself deeply concerned about the rampant scams that have been using the name of reputable companies like Mudrex to defraud innocent investors. The recent court order issued by the Delhi High Court, demanding the Ministry of Communication to take down 38 such websites within a week, is a significant step towards ensuring the safety and security of retail investors in India.

As an analyst, I’m reporting that Mudrex, the cryptocurrency exchange, has successfully secured a court order instructing India’s Ministry of Communication to remove up to 38 websites falsely using the Mudrex name for fraudulent activities.

On August 23rd, the Delhi High Court’s ruling, issued swiftly following the petition, grants the ministry a week to fulfill its requirements. However, the ministry, which is tasked with removing fraudulent websites, has yet to provide a response to CoinDesk’s request for comment.

As a crypto investor, I found myself compelled to seek legal intervention when roughly fifteen individuals, either through direct communication with their customer support or personally visiting their Bengaluru office, reported falling victim to a scam involving Mudrex.

In a recent interview, Mudrex CEO and co-founder Edul Patel suggested that approximately 1,000 retail investors might have fallen victim to scams, with potential losses exceeding $50,000.

Fraudsters posing as Mudrex team members on Telegram may trick individual investors with offers of incentives and job prospects, provided they complete specific tasks such as writing Google reviews. Additionally, they created bogus websites under the Mudrex brand and encouraged the public to invest through these sites. They then illicitly obtained funds from investors by doing so. This was stated in the court order.

As a crypto investor, I’d like to share that Amit Rangari, Mudrex’s legal head, revealed that a police complaint was lodged in Bengaluru on March 23, predating the $234 million hack that affected WazirX by several months. This unfortunate event in July resulted in a significant loss of nearly 45% of customer funds for WazirX and they’ve been working diligently since then to come up with effective solutions to address the situation.

“Patel informed CoinDesk that it’s uncertain whether any action was taken after our police report. Since scams persisted in the ensuing months, we opted for a more formal strategy – reaching out directly to the ministry. The only way we can establish this communication is by obtaining a High Court order.”

Instead of increasing apprehension among Indian retailers following the WazirX hack, Patel expressed his hope that it may instead work to our advantage rather than creating problems for us.