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Mudrex, an Indian cryptocurrency funding platform, has unexpectedly suspended its withdrawals on Saturday, drawing additional criticism from the community. The platform later clarified that this decision was made to enhance its compliance suite to prevent malicious actors.
The founder and CTO of Mudrex, Alankar Saxena, took to X to clarify that the suspension is temporary and “not permanent.”
“We will complete the compliance upgrade by January twenty-eighth and will resume crypto withdrawals thereafter.”
We have temporarily paused crypto withdrawals on @officialmudrex, not permanently. This action is part of our initiative to enhance the compliance suite to avoid harmful actors. Our priority is to serve our investors in the best and most compliant manner possible. We will complete…
— Alankar Saxena (@alankar_saxena) January 12, 2025
Saxena further reassured customers that INR withdrawals remain unaffected and that all funds are secure.
Edul Patel, co-founder and CEO of Mudrex, emphasized that Mudrex has consistently been active regarding crypto withdrawals.
“The aim 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 stated in a separate post.
Crypto withdrawals on @officialmudrex have always been active, but we have paused them only temporarily. The aim is to automate and streamline the verification process for quicker and more reliable withdrawals, all while maintaining the highest levels of compliance and security.
— Edul Patel
| duldul.eth (@Dul_dul) January 12, 2025
Mudrex was notably one of the few cryptocurrency exchanges in India that permitted crypto withdrawals. In August 2024, the platform received a court order to remove websites using the Mudrex brand to scam individuals.
Previously, scammers had impersonated the exchange’s employees on the messaging service Telegram, enticing retail investors by promising rewards and job opportunities if they completed certain tasks.
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Even prior to the official explanation from Mudrex, the news sparked skepticism and backlash within the Indian crypto community, spreading misinformation.
“There is a lot of misinformation being circulated,” Saxena wrote on X. “We believe in the core principles of crypto and are committed to collaborating with the community to advance the crypto tech revolution.”
The Indian crypto community expressed doubt following the announcement, with one user accusing Mudrex of providing “value exposure, not ownership.”
I’m not touching Mudrex with a ten-foot pole. And neither should you.
If an exchange claims they are halting crypto withdrawals, it implies (IMO) they never had it in the first place. All they’re offering you is “value exposure” not ownership.
Right now, they’re marketing to…— Aakash Athawasya (@AakashAtha) January 11, 2025
Some users even noted that the news is surprising despite the exchange reporting a 200% annual increase in its user base.
However, following the platform’s clarification, users posted on X expressing gratitude to Mudrex for addressing the issue and informing investors.
“Thank you for addressing this concern! Many investors were apprehensive, this will provide them clarity,” wrote one user.
Another user urged Mudrex to maintain transparency with investors, citing that many are “already facing issues due to Wazirx.”
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