Mudrex, a prominent cryptocurrency exchange in India, has won a court order directing India’s Ministry of Communication to take down up to 38 websites using the company’s name to conduct scams.
The Delhi High Court’s judgment, which was released on August 23, 2024, requires the government to abide by the directive within a week. The Ministry of Communication, which is in charge of taking down these bogus websites, has not yet replied to requests for comment, despite the seriousness of the situation.
Mudrex filed a lawsuit after around 15 customers phoned customer service or visited its Bengaluru office to report that they had been cheated.
The CEO and co-founder of Mudrex, Edul Patel, claims that there may have been as many as 1,000 victims in all, with losses believed to have exceeded $50,000.
The scams involved impersonators posing as Mudrex employees on Telegram, luring retail investors with promises of rewards and job opportunities in exchange for tasks like writing Google reviews. Additionally, these con artists create phony websites using the Mudrex brand and solicit funds from the public by enticing people to invest.
Mudrex’s legal head, Amit Rangari, stated that a police report was made in Bengaluru on March 23, far before the highly known WazirX attack, which resulted in a $234 million loss of client cash. Despite the filing, the frauds continued, causing Mudrex to bring the case to the High Court for more immediate action.
Patel expressed confidence that this court win will calm Indian retail investors, especially in light of the WazirX disaster. He stressed that the court ruling is an important milestone in Mudrex’s continuous efforts to protect investors and prevent fraudulent activity in the cryptocurrency industry.
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