BWA
Crypto industry body BWA to create internal groups for cybersecurity, consumer issues after WazirX's $230 mn cyberattack: Report
New Delhi/IBNS: In the wake of WazirX’s $230-million security breach, India's crypto and web 3 industry body Bharat Web3 Association (BWA) is creating two new internal groups focused on cybersecurity and consumer issues, MoneyControl reported quoting BWA chairman Dilip Chenoy.
These two groups will have representatives from all its members, which include WazirX, Coinbase, Polygon, CoinDCX, CoinSwitch, Biconomy, Liminal, Tax Nodes, Giottus and Hike, while the BWA will also review and update its existing consumer code guidelines, according to reports.
India’s largest cryptocurrency exchange platform WazirX lost 45 percent of its holding assets on July 18 after one of its multisig wallets (crypto wallets that require two or more private keys to unlock and withdraw funds) was hacked, allegedly by North Korea’s Lazarus Group in a state-sponsored cyber attack.
The third-party blockchain analytics tool, Lookonchain, said WazirX's 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.
MoneyControl reported, quoting BWA chairman Dilip Chenoy, that the industry body has been monitoring the situation and has been in touch with both the members involved – WazirX and Liminal.
“We have asked both of them to do a complete forensic analysis and root cause analysis on the issue and evaluate the legal and remedial actions that can be taken post this incident,” Chenoy told MoneyControl, adding that BWA suggested a third-party evaluation of the forensic report.
“We have agreed to create two groups to look at how to address such issues from both cybersecurity and consumer perspective going forward. They will be looking into this (WazirX) issue as well to come up with solutions,” the BWA chairman was quoted as saying by MoneyControl.
The cybersecurity group will have chief information security officers (CISOs) from the member firms who will come up with standard operating procedures (SOPs) and solutions in case of a repeat of WazirX, reports MoneyControl.
BWA chairman Dilip Chenoy told MoneyControl that until now the industry body has been focusing on FIU-IND (Financial Intelligence Unit—India) registration and anti-money laundering issues, and then this unprecedented cyberattack occurred.
“We have advised our members to be extra vigil around cybersecurity. We have agreed on having independent discussions with cyber experts as well as within our ecosystem to strengthen the industry from threats," Chenoy said. "The members have also been cooperating with various government agencies and will continue to do so."
WazirX’s founder and CEO Nischal Shetty, in an interview with MoneyControl, said the crypto exchange has sent its records to CERT-In (Indian Computer Emergency Response Team) and is in constant touch with the FIU and regulators.
"There’s an understanding within the government agencies that WazirX were the victims of a planned hack," he added.
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