The sudden pause, which began on January 11, has drawn backlash and fueled skepticism about the platform’s intentions.
Mudrex explained the decision to Cointelegraph, stating that the suspension is aimed at upgrading its compliance framework to prevent misuse by bad actors.
Mudrex Defends Withdrawal Pause for Stronger Infrastructure
According to Cointelegraph, Edul Patel, co-founder and CEO of Mudrex, ensuring robust infrastructure is critical in the crypto space: “You need to do that with something as critical as crypto. If the infrastructure is not correct, it is very easy for it to be misused for nefarious activities. As a responsible platform, we need to make sure that our systems are in place and we are improving the services at all points in time.”
We have temporarily paused crypto withdrawals on @officialmudrex, not permanently. This step is part of our effort to upgrade the compliance suite to avoid bad actors. Our priority is to serve our investors in the best and most compliant way possible. We will be able to complete…
— Alankar Saxena (@alankar_saxena) January 12, 2025
Mudrex stands out as one of the few crypto exchanges in India that have allowed crypto withdrawals. “We are the only company that has had crypto withdrawals in India for the last three and a half years now, and we continue to stick with that,” said Patel.
Despite the company’s reassurances, the move has sparked a wave of reactions. Crypto trader Vivan Live took to X to sound the alarm, advising users to pull their funds.
Another community member, Aakash Athawasya, expressed doubts, accusing Mudrex of never offering true crypto withdrawals. He claimed the platform provided only “price exposure, not ownership,” and said he wouldn’t touch Mudrex “with a ten-foot pole.”
The controversy comes as Mudrex celebrates significant growth. The platform reported a 200% annual increase in its user base, now at three million, and a December trading volume surge to $200 million—20 times the usual activity.
Something is going on at Mudrex pic.twitter.com/CTob5t5Nau
— AkshayKhurana (@0xAkshayKhurana) January 12, 2025
Meanwhile, the Indian crypto market faces mounting regulatory pressures. Exchanges like Bybit have already suspended services in the country. Bybit announced on January 12th that it would halt trading, account openings, and order placements, citing evolving regulations.
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