Indian Crypto Exchange Mudrex Suddenly Blocks Withdrawals

• Indian crypto exchange Mudrex has suddenly stopped crypto withdrawals.
• CEO Alankar Saxena assures users that funds are safe, with withdrawals set to resume after Jan. 28.
• INR withdrawals remain active, allowing users to convert and withdraw their holdings.

Indian cryptocurrency exchange Mudrex announced a sudden pause on crypto withdrawals on Jan. 12, sparking concerns among users.

However, the company assured its community that the move is temporary and part of a broader compliance upgrade aimed at enhancing security and operational efficiency.

Mudrex CEO Clarifies the Situation

In response to mounting speculation, Mudrex CEO Alankar Saxena took to X to address the situation . He emphasized that the pause is a proactive measure to bolster the platform’s compliance framework, ensuring the exclusion of bad actors.

Saxena explained that the compliance upgrade will streamline the verification process, allowing for faster and more reliable withdrawals while maintaining the highest security standards.

He confirmed that the upgrade is expected to be completed by Jan. 28, after which crypto withdrawals will resume.

Despite the halt on crypto withdrawals, Saxena reassured users that INR withdrawals remain unaffected. He advised those needing immediate access to funds to convert their crypto holdings into INR and proceed with withdrawals.

“Mudrex has always allowed crypto deposits and withdrawals, even when many platforms in India avoided it due to the challenges involved. We believe in giving investors the freedom to access their funds anytime and in any manner,” Saxena wrote.

A Familiar Scenario for Indian Crypto Users

The abrupt halt in withdrawals has rekindled fears of similar incidents involving other Indian crypto exchanges, notably WazirX.

In June 2024, WazirX suffered a $230 million hack, leading to an ongoing freeze on withdrawals. The platform has faced significant backlash for holding both INR deposits and withdrawals, which were not part of the hack.