- Mudrex secured a court order to shut down 38 fraudulent websites.
- The Indian Court gave the ministry one week to remove the scam sites.
Mudrex, a Bengaluru-based cryptocurrency exchange, sought legal recourse after approximately 15 individuals complained about being defrauded. These complaints involved websites impersonating Mudrex.The Indian Court has ordered the Ministry of Communication to shut down 38 scam websites. These websites were exploiting the name of cryptocurrency exchange Mudrex.
The court’s decision came swiftly, within a day of Mudrex’s petition, and granted the ministry a week to take action. This intervention follows numerous reports of fraudulent activities affecting its customers, highlighting the rising issue of scams in India’s growing cryptocurrency market.Moreover, these websites often paired with scammers posing as Mudrex employees on platforms like Telegram. They lured retail investors with promises of rewards and work opportunities.
Mudrex’s Recent Expansion and Scams
In March, they expanded its offerings by introducing U.S. spot Bitcoin ETFs for Indian investors. By partnering with U.S. financial institutions, Mudrex provided more accessible and regulated investment options in Bitcoin. Moreover, this development came at a crucial time, just days before the exchange sought legal action against fraudulent websites, enhancing investor confidence in its platform.
Victims were directed to invest money in these fraudulent sites, leading to substantial losses. According to Mudrex CEO Edul Patel, the estimated number of scammed individuals could be as high as 1,000, with losses potentially exceeding $50,000.
Mudrex had initially filed a police complaint in Bengaluru on March 23. Mudrex’s legal head, Amit Rangari, expressed uncertainty about the police’s response, noting that scams persisted even after their complaint was lodged. This prompted the company to pursue more decisive action through the courts.
Patel expressed hope that the court’s intervention would boost investor confidence, especially in the wake of high-profile hacks like the one affecting WazirX. He believes the order could work in favour by bolstering confidence in their platform during a time of increased scrutiny across the cryptocurrency sector.
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