Mudrex Halts Crypto Withdrawals Till January 28 Amid Efforts to Automate Verification System 5i6e Technology News

Mudrex says that this is the first upgrade connected with KYC procedures related to crypto withdrawals. 285k3r

Written by David Delima | Updated: 13 January 2025 19:12 IST

Mudrex Halts Crypto Withdrawals Till January 28 Amid Efforts to Automate Verification System

Photo Credit: Unsplash/ Art Rachen r5a68

Mudrex said INR withdrawals are not affected by the ongoing process

Highlights

Mudrex wishes to ensure crypto assets are not misused by miscreants
The platform has vouched all funds are secure
Mudrex is adding video KYC for initiaters of crypto withdrawals

ment

Mudrex is seeking additional KYC details for s initiating crypto withdrawals, and the crypto investment firm has halted crypto withdrawals for the next couple of weeks as part of an ongoing its ‘compliance suite'. The platform informed s about pause on withdrawals through via emails over the weekend. The company also posted a blog post about the issue on Sunday. The development stirred concerns amid Mudrex's base, about the safety of their crypto deposits. The platform, however, has stated that all deposits will be secure during this ongoing process.

Mudrex Says Upgrade Will Automate and Streamlining Verification

This is the first upgrade that Mudrex is processing for its KYC procedure related to crypto withdrawals. Alankar Sexena, Co-founder and CTO at Mudrex had posted about the development on X (formerly Twitter) on January 13. Speaking to Gadgets 360, he said s need not worry about their funds' safety and that their assets are completely safe.

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“This particular upgrade is focused on automating and streamlining verification for faster and more reliable withdrawals. We've been working on upgrading our compliance and systems for the past few months,” Saxena said. “However, making these changes could impact s' experience, so we've decided to pause withdrawals until the 28th to ensure everything runs smoothly.”

In his post published on X, Saxena told s that INR withdrawals are not affected by the ongoing process at Mudrex.

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

In conversation with Gadgets 360, a Mudrex spokesperson claimed that the platorm aims is to ensure that crypto assets are not misused by criminals to move illegal funds around in an untraceable manner. The spokesperson further disclosed that Mudrex is adding requirements like video KYC to maintain a detailed information base for s processing crypto withdrawals on its platform. The official further added that Mudrex has not identified any crucial threat that has prompted it to upgrade its compliance suite, adding that it is a step aimed at improving its verification system.

Mudrex s React to Halt on Withdrawals

Cryptocurrencies are not fully regulated in the country, due to a lack of laws to govern the sector. Moreover, incidents like ByBit's recent suspension of crypto trading service — or last year's WazirX wallet hack leading to a loss of around $230 million (roughly Rs. 1,900 crore) — have also added to investor concerns in the country.

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Mudrex's step to pause crypto withdrawals to update its compliance suite has come across as ‘odd' and ‘peculiar' to of India's crypto community. It is notable, that this development came just two days after Mudrex marked its seventh anniversary and announced that its base has grown by 200 percent to breach the mark of three million as of January.

Addressing the Mudrex situation, many from the crypto circle hhighlighted that such instances only add to the prevailing sentiment of mistrust among crypto investors in India.

I hope mudrex resolves this issue soon

I have no doubts that their intentions are good and honest.

But, it creates a general sentiment of mistrust among investors https://t.co/3K2lfoDA3d
— Pranav | prnv.eth | :rocket: EthIndia (@_pranav_singhal) January 12, 2025

idk whats up with mudrex but after whats happened with wazirx, noone should be trusting any indian exchange.

anyways, if any indian fren who still uses an indian exchange see this post, withdraw all and just start using dexs

and if you need to withdraw funds to bank, just do… https://t.co/XTP7Nug2e7
— Shivrxj (@shivrxj) January 12, 2025

Others lauded the platform for being transparent and maintaining the safety of crypto funds during its internal upgrades.

Thanks for addressing this issue! Lot of investors were worried, this will give them clarity!
— IITian In Crypto (Umang Gupta) (@IITian_InCrypto) January 12, 2025

Good to know it is temporary , kindly maintain transparency with s , they are already facing many problems due to Wazirx .
— Adnan (Crypto Craze) (@Cryptowithadnan) January 12, 2025

The platform claims that its monthly trading volume has reached $200 million (roughly Rs. 1,732 crore). Founded in 2018 by Edul Patel and Alankar Saxena, Mudrex has offices in India as well as the US.

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Further reading: Crypto Rules

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at [email protected]. More