Crypto News – Bharat Web3 Boosts Security After WazirX Breach
Crypto News – In the wake of the $230 million hack targeting WazirX, India’s Bharat Web3 Association (BWA) is intensifying its efforts to bolster cybersecurity and enhance consumer protection within the crypto sector. According to local media reports, the BWA, led by chairman Dilip Chenoy, has established two specialized internal groups to address these concerns and investigate the recent security breach.
Cybersecurity Task Force
The first group, focusing on cybersecurity, is composed of chief information security officers from member firms. This team is tasked with developing standard operating procedures and implementing solutions to prevent future security incidents. The goal is to create a robust framework that fortifies defenses against similar breaches in the future.
Consumer Protection Task Force
The second group will concentrate on consumer protection, ensuring that current guidelines are updated and user interests are adequately safeguarded. This task force aims to address any gaps in existing protections and enhance the overall security for users of crypto platforms.
Ongoing Investigation and Forensic Analysis
Dilip Chenoy emphasized that a comprehensive investigation into the breach is in progress. The BWA is actively monitoring the situation and maintaining regular communication with the affected parties — WazirX and Liminal. The association has requested a detailed forensic analysis and root cause evaluation from both companies, alongside an assessment of potential legal and remedial actions.
Chenoy also mentioned that the BWA has recommended a third-party evaluation of the forensic report to ensure an impartial review. This step is intended to provide an objective analysis of the breach and ensure a thorough investigation of all aspects of the incident.
Expansion of BWA’s Focus
Traditionally, the BWA has concentrated on regulatory compliance, including registering with the Financial Intelligence Unit and implementing Anti-Money Laundering measures. However, the recent hack has underscored the need for a greater emphasis on cybersecurity. The association, which includes prominent players such as Coinbase, Polygon, CoinSwitch, Liminal, Biconomy, Tax Nodes, Giottus, and Hike, will now also incorporate WazirX’s local competitor, CoinDCX, into its newly formed groups. These teams will review and update consumer protection guidelines and tackle current cybersecurity challenges.
Impact of the WazirX Hack
The WazirX hack, which led to a substantial loss of approximately $235 million, represents the second-largest hack of a centralized exchange in recent history. The breach, affecting 45% of user funds, could have significant ramifications for India’s cryptocurrency sector, which has continued to thrive despite government pressure. The BWA’s prompt response highlights the urgency of addressing cybersecurity issues to protect the integrity of the crypto industry.
WazirX’s Response
On July 27, WazirX announced a strategic plan to minimize disruption for its users and maintain platform stability. This initiative is part of the exchange’s broader efforts to recover from the hack and reinforce its security measures moving forward.
FAQ: Bharat Web3 Association’s Response to WazirX Hack
What happened with WazirX recently?
WazirX, one of India’s major cryptocurrency exchanges, suffered a significant security breach resulting in a $230 million hack. The attack compromised approximately 45% of user funds, making it one of the largest hacks of a centralized exchange in recent times.
What actions is the Bharat Web3 Association (BWA) taking in response to the hack?
The BWA, led by Dilip Chenoy, is focusing on strengthening cybersecurity and consumer protection. They have formed two new internal groups: one dedicated to cybersecurity to develop procedures and solutions to prevent future breaches, and another focused on updating consumer protection guidelines.
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