Mudrex, a Bengaluru-based cryptocurrency exchange backed by Y Combinator and other prominent investors, has temporarily suspended crypto withdrawals, citing compliance upgrades aimed at curbing misuse by malicious actors. The platform, which recently reported a 200% surge in its user base, plans to resume services by January 28, ensuring all customer funds remain safe and accessible.
Why Mudrex Paused Crypto Withdrawals?
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
Founder Alankar Saxena announced the temporary halt in an X (formerly Twitter) post on January 12, explaining that the decision was driven by a need to enhance compliance processes and protect the platform from bad actors. While crypto withdrawals are paused, INR withdrawals remain unaffected, and users can continue accessing their funds. Saxena assured in his statement:
We believe in giving investors the freedom to access their funds anytime and in any manner. To be clear, INR withdrawals are not affected, and all funds are completely safe.
Addressing Misinformation and Concerns
The exchange has been proactive in addressing misinformation circulating online about the suspension. Saxena urged users to rely only on official updates and contact the support team for assistance if needed.
Mudrex reassured users that customer funds remain secure and that the pause is a temporary measure to align with evolving regulatory requirements. The company stated:
This is part of our commitment to building trust in a space many platforms in India have avoided due to regulatory challenges.
Soaring Growth Amid Challenges
Mudrex’s decision comes amid significant growth in its user base and trading volumes. The platform reported a 200% increase in users this year, with monthly trading volumes reaching $200 million. Founded in 2018 by Edul Patel, Prince Arora, Alankar Saxena, and Rohit Goyal, Mudrex has secured $9.15 million in funding from investors like Nexus Venture Partners and QED Investors. In 2024, the company recorded $2.2 million in revenue with a team of 93 employees.
The move highlights the growing challenges crypto platforms face in India, where regulatory ambiguity has pushed many exchanges to limit their services. Unlike several competitors, Mudrex has maintained its commitment to supporting crypto transactions despite the hurdles.
