In the Delhi High Court’s order on August 23, the ministry was directed to shut down these fake websites within a week.

Mudrex has been targeted in India by fraudsters impersonating company employees, particularly through the Telegram messaging service. Scammers duped retail investors by promising them rewards and business opportunities in exchange for performing certain tasks (e.g. writing Google reviews).

They also set up fake websites under the name Mudrex, encouraging the general public to invest in them and illegally collecting money. In the court decision, it was emphasized that the ministry should take action to prevent such illegal activities and frauds.

Mudrex took this step after around 15 people reported that they had been scammed by contacting customer support or coming to their office in Bengaluru. Mudrex CEO and co-founder Edul Patel explained: “We assess that the actual number of retail investors is around 1,000 and the estimated loss could exceed approximately $50,000.”

Patel explains how common this situation is and how high the number of fraud victims is.

Amit Rangari, Mudrex’s legal head, stated that the complaint to the police was filed in Bengaluru on March 23. It is known that before this date, WazirX, one of India’s leading cryptocurrency exchanges, suffered a $234 million hack attack.

This security vulnerability, which occurred in July, caused WazirX to lose almost 45% of customer funds, and the company sought a solution after this incident.

“We don’t know if any action was taken after our police complaint. Because the scams continued, so we decided to take a more formal approach, communicate directly with the ministry, and the only way we could get that was through the Supreme Court order,” Patel told CoinDesk in an interview. he said.

Patel’s statements underscore Mudrex’s commitment to fighting fraud and the importance of cooperation with the government.

While investors in India are worried following the WazirX hack, this move by Mudrex signals a stronger approach to combating fraud. “I hope this works in our favor, not against us,” Patel said while responding to a question on whether this situation will cause more concern among retail investors in India. Such legal steps could encourage cryptocurrency exchanges and investors to take more effective anti-fraud measures and increase security in the industry.

These developments once again reveal how important it is to fight against fraud in the cryptocurrency world and the role of legal frameworks in this fight. This struggle by Mudrex can serve as an example for other cryptocurrency exchanges and users facing similar problems.