In a significant move to protect its brand and users, cryptocurrency exchange Mudrex has secured a court order from the Delhi High Court, instructing India’s Ministry of Communication to take down a staggering 38 fraudulent websites that have been misusing the company’s name to perpetrate scams. This judgement, issued on August 23, was remarkably swift, coming just a day after Mudrex filed its petition. The court has mandated that the ministry, which is the designated authority responsible for shutting down fake websites, comply with the order within a week. However, as of now, there has been no immediate response from the ministry regarding this matter.

Mudrex’s legal action was prompted by a concerning trend where approximately 15 individuals reached out to the company’s customer support or visited its Bengaluru office, claiming to have fallen victim to scams that exploited the Mudrex brand. The CEO and co-founder of Mudrex, Edul Patel, expressed grave concerns, estimating that the actual number of retail investors affected could be as high as 1,000, with the total financial losses potentially exceeding $50,000.

• Scam Methods: Scammers have been impersonating Mudrex employees on the messaging platform Telegram. They deceive retail investors by promising lucrative rewards and job opportunities in exchange for specific tasks, such as writing Google reviews or sharing links.
• Fake Websites: These impostors have also created counterfeit websites masquerading as Mudrex, inviting the general public to invest in these fraudulent platforms. They illegally collect funds from unsuspecting investors, often leading to significant financial losses.

The court order detailed the modus operandi of the scammers, highlighting how they have exploited the Mudrex name to cultivate trust among potential victims. The situation is particularly alarming given that the cryptocurrency market can be challenging to navigate, especially for inexperienced investors who may be more susceptible to such scams.

Mudrex’s legal head, Amit Rangari, noted that the company had previously filed a police complaint in Bengaluru on March 23, prior to a major incident involving another cryptocurrency exchange, WazirX, which suffered a massive $234 million hack in July. This breach resulted in the loss of almost 45% of customer funds, leaving WazirX struggling to regain the trust of its users and find effective solutions to secure their investments.

Despite the earlier police complaint, Patel expressed uncertainty regarding any subsequent action taken against the scammers, indicating that the fraudulent activities persisted even after the report was filed. This ongoing issue compelled Mudrex to pursue a more formal and direct line of communication with the Ministry of Communication, thus leading to the necessity of obtaining a High Court order to expedite the resolution process.

When asked about the potential impact of this legal action on investor sentiment, especially in light of the recent WazirX hack, Patel optimistically stated, “I hope it works more in our favor than against it.” By taking a strong stance against these scams, Mudrex aims to reassure its users and the wider cryptocurrency community that it is committed to protecting their interests and maintaining the integrity of its platform.

As the cryptocurrency landscape continues to evolve, the importance of safeguarding against fraudulent activities cannot be overstated. The swift action by Mudrex not only highlights the company’s dedication to its users but also serves as a warning to potential scammers that such unethical practices will not go unchallenged.