The Delhi High Court has ordered the Indian Ministry of Communications to take immediate action against 38 fraudulent websites using the name of cryptocurrency exchange Mudrex to commit fraud.
Indian Court Orders Shutdown of Scam Websites Impersonating Crypto Exchange Mudrex
The court's ruling, issued on August 23, obliges the ministry responsible for shutting down fake websites to comply with the order within a week.
The court’s decision came quickly, a day after Mudrex’s application. Mudrex had applied to the court after receiving complaints from around 15 people who reported being scammed by these fake websites.
These people either contacted Mudrex's customer care or visited the company's office in Bengaluru to report the incidents.
Edul Patel, CEO and co-founder of Mudrex, estimates that the actual number of victims could be as high as 1,000 and total losses could exceed $50,000.
Scammers impersonated Mudrex employees on messaging platforms such as Telegram, luring unsuspecting investors with promises of rewards and job opportunities in exchange for tasks such as writing Google reviews.
According to the court ruling, fake websites operating under the name Mudrex illegally collected money from the public by inviting them to invest.
Mudrex’s legal director Amit Rangari said the company filed a police complaint in Bengaluru on March 23, months before another leading cryptocurrency exchange, WazirX, suffered a major hack in July that led to the loss of $234 million in customer funds.
Despite the complaint, the scams continued, prompting Mudrex to seek a more direct approach by seeking a High Court ruling.
Patel expressed hope that the court’s decision would reassure investors rather than increase their concerns, especially after the WazirX attack, and stressed that Mudrex is committed to protecting its users and ensuring the integrity of its platform.
*This is not investment advice.