In response to the recent security breach on WazirX, the Bharat Web3 Association (BWA) is taking proactive steps to enhance cybersecurity and consumer protection in India’s crypto industry. The BWA, chaired by Dilip Chenoy, has formed two internal groups to address these critical issues following the $230 million hack. One group will focus on cybersecurity, aiming to develop standard operating procedures and solutions to prevent future breaches. The other group will concentrate on consumer protection, ensuring that guidelines are up-to-date and user interests are safeguarded. The association is conducting a thorough investigation into the breach, working closely with affected parties to analyze the incident comprehensively.
The newly formed cybersecurity group comprises chief information security officers (CISOs) from member firms, who will work on developing SOPs and solutions to prevent incidents similar to the WazirX breach. While the BWA has traditionally focused on regulatory compliance and anti-money laundering measures, the recent security breach has highlighted the urgent need for improved cybersecurity measures. Major industry players like Coinbase, Polygon, CoinSwitch, Liminal, Biconomy, Tax Nodes, Giottus, Hike, and now CoinDCX, WazirX’s local rival, are involved in the newly established groups to address consumer protection and cybersecurity challenges.
On July 18, India’s largest cryptocurrency exchange, WazirX, experienced a significant security breach, losing 45% of its holding assets due to the hacking of a multisig wallet. The attack, allegedly conducted by North Korea’s Lazarus Group, raised concerns since multisig wallets require multiple private keys to unlock funds. The stolen assets, valued at $230 million, included various cryptocurrencies such as Shiba Inu, Ethereum, Matic, Pepe coin, Tether, and Gala. WazirX has temporarily suspended withdrawals and trading post the incident, cooperating with government agencies and adopting a recovery plan allowing customers to access a portion of their portfolio while converting the rest to USDT.
Dilip Chenoy from the BWA emphasized the importance of cybersecurity vigilance and discussions with experts to strengthen the industry against threats. The association is engaging with independent cyber experts and within its ecosystem to enhance cybersecurity measures and combat potential future attacks. Notably, WazirX has submitted its records to CERT-In and is in ongoing communication with the FIU and regulators to address the attack. Government agencies recognize WazirX as a victim of a planned hack, aligning efforts to secure the exchange’s operations and assets against further threats. Effective coordination between industry players, regulatory bodies, and cybersecurity experts is crucial in ensuring robust protection for users and the broader cryptocurrency ecosystem in India.
The BWA’s response to the WazirX security breach underscores the cryptocurrency industry’s commitment to bolstering cybersecurity and safeguarding consumer interests in India. By forming specialized internal groups focused on cybersecurity and consumer protection, the association aims to establish standardized protocols, implement innovative solutions, and revise existing guidelines to mitigate future security risks effectively. With the support of leading industry players and collaborative efforts with government agencies, the BWA and its members are taking proactive measures to enhance the resilience of India’s crypto industry and inspire broader confidence among users and investors. Through ongoing investigations, engagement with cyber experts, and active cooperation with regulatory authorities, the BWA is poised to lead the industry towards a more secure and transparent future for cryptocurrency operations in the region.
