WazirX Hack: Coinbase, Polygon Join India’s BWA Internal Groups For Probe

Enhanced Cybersecurity and Consumer Protection Measures in Response to WazirX Hack

In light of the recent $230 million WazirX hack, the Bharat Web3 Association (BWA) in India has established two specialized internal groups dedicated to strengthening cybersecurity and safeguarding consumer interests within the cryptocurrency industry.

Formation of Internal Groups to Address Cybersecurity and Consumer Concerns

The groups, comprising representatives from prominent BWA members such as WazirX, Coinbase, and Polygon, will collaborate on reviewing current consumer code guidelines and addressing emerging cybersecurity challenges. The participation of WazirX's rival, CoinDCX, underscores the industry's commitment to working together in times of crisis.

Review of WazirX Hack to Improve Protocols

These groups will also assist in investigating the recent WazirX hack. The stolen assets during the attack, allegedly perpetrated by North Korea's Lazarus Group, included:

• $102 million in Shiba Inu (SHIB)
• $52.5 million in Ethereum (ETH)
• $11.24 million in Polygon (MATIC)
• $7.6 million in Pepe Coin (PEPE)
• $135 million in Tether (USDT)
• $3.5 million in Gala (GALA)

BWA's Commitment to Thorough Investigation and Remediation

BWA Chair Dilip Chenoy has emphasized the organization's close monitoring of the situation and direct involvement with WazirX and Liminal, the compromised parties. He has requested thorough forensic and root cause analyses and an evaluation of legal and remedial actions. The BWA has also suggested an independent third-party evaluation of the forensic report for impartiality and comprehensiveness.

Establishment of Cybersecurity Group to Prevent Future Breaches

The cybersecurity group, consisting of chief information security officers from member firms, will develop standard operating procedures and solutions to prevent similar security breaches in the future. Chenoy acknowledged that cybersecurity has become a top priority for the BWA, given the unprecedented nature of the WazirX attack.

WazirX's Cooperation with Authorities and Recovery Plan

WazirX founder and CEO Nischal Shetty has assured the exchange's cooperation with authorities and government agencies. WazirX has submitted records to CERT-In and is working with the FIU and regulators. The exchange has also proposed a recovery plan to mitigate losses and resume operations, which includes providing customers with access to 55% of their portfolio tokens at any point, while converting and locking the remaining 45%.

Ongoing Investigation and Customer Feedback

The investigation into the WazirX hack is ongoing, with the exchange temporarily pausing withdrawals and trading of crypto assets. The recovery plan has attracted mixed reactions from customers and industry participants, with some expressing concerns. WazirX is seeking customer votes on the plan until August 3.