Following the recent $230 million security breach at WazirX, the Bharat Web3 Association (BWA) is intensifying its efforts to bolster cybersecurity and protect consumers within India’s cryptocurrency sector.
Under the leadership of Dilip Chenoy, the BWA has set up two specialized groups to tackle these issues and thoroughly investigate the breach.
BWA Launches Cybersecurity and Consumer Protection Initiatives Post-WazirX Breach
Local reports indicate that one group will concentrate on enhancing cybersecurity measures. This team, composed of chief information security officers from BWA member companies, will create standard operating procedures and develop solutions to prevent future breaches.
The second group will focus on consumer protection, updating guidelines and safeguarding user interests. Chenoy emphasized that a detailed investigation into the breach is ongoing, with the BWA maintaining close contact with WazirX and Liminal to ensure a thorough examination.
“We have requested both WazirX and Liminal to perform a complete forensic analysis and root cause assessment, and to explore potential legal and remedial actions,” stated Chenoy.
To ensure impartiality, the BWA has recommended an independent third-party review of the forensic report. This approach aims to provide an objective analysis of the breach, ensuring all aspects are thoroughly scrutinized.
The newly formed cybersecurity team, consisting of chief information security officers (CISOs) from member firms, will develop standard operating procedures (SOPs) and solutions to avert incidents similar to the WazirX breach.
Historically, the BWA has prioritized regulatory compliance, such as registering with the Financial Intelligence Unit and implementing anti-money laundering measures. However, this breach has underscored the necessity of focusing more on cybersecurity.
The association, which includes major industry players like Coinbase, Polygon, CoinSwitch, Liminal, Biconomy, Tax Nodes, Giottus, and Hike, will now also involve CoinDCX, a local rival of WazirX, in its newly established groups. These teams will review and update existing consumer protection guidelines and address current cybersecurity challenges.
WazirX Hack Results in $230M Loss, Linked to North Korea’s Lazarus Group
On July 18, WazirX, India’s largest cryptocurrency exchange, suffered a significant breach, losing 45% of its holding assets after one of its multisig wallets was hacked. The attack, allegedly conducted by North Korea’s Lazarus Group, raises serious concerns as multisig wallets require multiple private keys to authorize transactions.
Chenoy advised, “We have urged our members to heighten their cybersecurity vigilance and have agreed to engage in independent discussions with cyber experts and within our ecosystem to fortify the industry against threats.”
WazirX is also collaborating with various government agencies. Nischal Shetty, founder and CEO of WazirX, announced that the exchange has submitted its records to CERT-In and is in ongoing communication with the Financial Intelligence Unit and regulators, who recognize that WazirX was a victim of a sophisticated attack.
The stolen assets, worth $230 million, included $102 million in Shiba Inu, $52.5 million in Ethereum, $11.24 million in Matic, $7.6 million in Pepe coin, $135 million in Tether, and $3.5 million in Gala, according to Lookonchain.
In response, WazirX has temporarily suspended withdrawals and trading. On July 27, it proposed a recovery plan that would allow customers to access and trade 55% of their portfolio tokens, with the remaining 45% converted to USDT and locked. This proposal is open for customer voting until August 3.
