Indian Crypto Exchange Mudrex Halts Crypto Withdrawals, Faces Community Backlash

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Sujha Sundararajan

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Sujha Sundararajan

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Sujha has been recognised as 🟣 Women In Crypto 2024 🟣 by BeInCrypto for her leadership in crypto journalism.

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Mudrex halts withdrawals

Mudrex, an Indian crypto investment platform, has suddenly halted its withdrawals on Saturday, attracting more criticism from the community. The exchange later announced that it was due to an effort to upgrade the compliance suite to avoid bad actors.

Mudrex’s founder and CTO, Alankar Saxena, took to X to clarify that the suspension is temporary and “not permanent.”

“We will be able to complete the compliance upgrade by January 28th and will resume crypto withdrawals after.”

Saxena further assured users that INR withdrawals are unaffected and that all funds remain safe.

Edul Patel, co-founder and CEO of Mudrex, noted that Mudrex has always been active with respect to crypto withdrawals.

“The goal is to automate and streamline the verification process for quicker and more reliable withdrawals, all while maintaining the highest levels of compliance and security,” he said in a separate post.

Mudrex was notably one of the few crypto exchanges in India that allowed crypto withdrawals. In August 2024, the platform obtained a court order to takedown websites using Mudrex’s brand to scam people.

Previously, scammers have impersonated as the exchange’s employees on messaging service Telegram, luring retail investors by promising rewards and work opportunities if they carry out certain jobs.

Mudrex’s Crypto Withdrawal Halt Raise Fears Among Investors

Even before the official clarification from Mudrex, the news triggered skepticism and backlash among Indian crypto community, spreading false information.

“There is a lot of misinformation being spread,” Saxena wrote on X. “We believe in the core principles of crypto and are dedicated to working with the community to push the crypto tech revolution forward.”

The Indian crypto community expressed skepticism following the announcement, with one user accusing Mudrex of giving “price exposure, not ownership.”

Some users even pointed out that the news is shocking despite the exchange reported a 200% yearly increase in its user base.

However, following the clarification from the platform, users posted on X thanking Murdex for addressing the issue and informing investors.

“Thanks for addressing this issue! Lot of investors were worried, this will give them clarity,” wrote one user.

Another user requested Mudrex to maintain transperancy with investors, citing that many are “already facing problems due to Wazirx .”

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