Based on CoinDesk information, the judgement, which was passed on 23 August 2024, gives the ministry seven days to comply. Mudrex appealed to the court when 15 people contacted the company about being scammed. Edu Patel, the CEO and co-founder of the cryptocurrency exchange, said:

We estimate the actual number of retail investors scammed could be 1,000, and the estimated loss could be in excess of about $50,000.

Scammers allegedly posed as Mudrex employees on the messaging service Telegram and attracted customers with promises of employment and other rewards if they did certain things such as posting Google reviews. The court indicated that these scammers also used the Mudrex name on fake websites, where they “invited the general public to invest on these websites, collecting monies from them illegally and frequently”.

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The company’s legal executive stated that their police complaint was filed on 23 March 2024, which was well before the July 2024 $234m hack of WazirX. The virtual token exchange lost close to 45% of customer funds after this illegal activity. Patel added:

We don’t know if any action was taken after our police complaint. Because people continued to get scammed in the months following, we decided to take a more formal approach, a direct line of communication with the ministry, and the only way we can get that is if we had a High Court order.

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