Gairika Mitra
Indian cryptocurrency exchange Mudrex recently achieved a significant legal victory in its fight against online scammers. The exchange asked India’s Ministry of Communication to take down 38 websites that used its name to carry out scams and con people.
The Delhi High Court passed the judgment within a day since the petition was filed. Mudrex took legal action after 15 people approached its customer support, with some of them visiting its office in India, declaring they were scammed.
Mudrex further revealed that the actual number of retail investors scammed could be 1,000 and the estimated loss could be more than $50,000.
The scammers targeted victims and lured them into using the messaging platform Telegram. The victims were offered rewards and job opportunities and were asked to write or add reviews on Google in exchange. The scammers also created fake websites under the name of Mudrex, illegally collecting money.
Amit Rangari, the legal head of Mudrex, noted that the company had filed a police complaint back in March, however, no action had been taken since, which led them to approach the High Court.
Related: CFTC Opens Door for National Trust Banks to Issue Stablecoins
Scams and hacks aren’t a novelty in India. The latest one hogging the limelight is WazirX, also a popular Indian cryptocurrency that faced a security breach and lost more than $230 million last month.
The breach also cost around $100 million in Shiba Inu (SHIB) alone, causing the token’s price to plummet to 7.3%, owing to the hacker selling off the stolen SHIB tokens.
More recently, WazirX has found itself in more trouble after cryptocurrency exchange CoinSwitch filed a lawsuit against it, asserting the former’s inadequate action. CoinSwitch noted that despite its consistent follow-ups since the day of the WazirX hack, there was no solution offered by WazirX to retrieve the stolen funds, causing CoinSwitch to take legal action.
While all of this is happening in India, crypto scams are becoming a common spectacle across the globe. The Shib Daily reported earlier that a trader lost over $1 million within a single hour of purchasing a scam token endorsed by the hacked account of French football star Kylian Mbappé.
Related: Judge Allows Insider Trading Lawsuit Against Coinbase Execs
Furthermore, Australia is facing its own set of challenges with crypto investment scams. The Australian Federal Police recently revealed that Australians have lost a minimum of $180 million to these scams in the previous year.
The prevalence of crypto scams has surged globally, particularly with the rise of impersonators, celebrity endorsements, and deepfakes, which enable malicious actors to easily exploit unsuspecting individuals.
Read more
- Indian Crypto App CoinSwitch Files Lawsuit Against WazirX: A New Chapter in Crypto Rivalries
- India’s WazirX Exchange Breached, Hacker Siphons Off $230M in Crypto
GAIRIKA
Gairika is a cryptocurrency journalist with a focus on Bitcoin and blockchain technology.
