India’s BWA Moves To Prevent WazirX Related Hacks

In response to the recent WazirX hack, India’s Bharat Web3 Association (BWA) is intensifying efforts to bolster cybersecurity and enhance consumer protection within the cryptocurrency industry. According to a news outlet, the BWA, under the leadership of Dilip Chenoy, has established two dedicated internal groups to address these pressing concerns. 

Both Groups Will Help Investigate the WazirX Security Breach

These groups are tasked with investigating the security breach and implementing measures to prevent similar incidents in the future. The group includes prominent players like Coinbase, Polygon, Liminal, CoinSwitch, and Biconomy. Likewise, Giottus, Hike, Tax Nodes, WazirX, and CoinDCX, WazirX’s local rival will join the established group.

The first group, focused on cybersecurity will comprise chief information security officers (CISOs) from member firms. These experts will collaborate to develop and enforce stringent security protocols across the industry. Their goal is to identify vulnerabilities, enhance existing security frameworks, and establish the best practices that can be adopted. 

The second group is dedicated to consumer protection. This team will ensure that the industry’s guidelines are updated and user’s interests are prioritized. They will work on refining policies and practices to safeguard consumers, providing them with greater confidence in the security of their investments. This group will also focus on educational initiatives to inform users about potential risks and the steps they can take to protect themselves.

In addition, the CISOs will ensure clear Standard Operating Procedures (SOP) and solutions to prevent hacking from happening again. Both groups will also focus on improving the security of the Indian crypto space.

The WazirX Breach

WazirX, India’s leading crypto exchange Safe Multisig wallet on Ethereum has recently faced a major attack. As reported by TheCoinRise, approximately $234.9 million worth of funds from the safe Multisig wallet were transferred to a new address. The compromised assets included tether (USDT), Pepe (PEPE), and Gala (GALA), which have been swapped into Ether (ETH).

Meanwhile, Polygon Labs CEO Mudit Gupta commented on the incident. He suggested that the nature of the hack points towards North Korean cybercriminals as the likely culprits. Gupta explained that the attackers upgraded the Safe Multisig wallet to a malicious version, enabling them to drain its funds.

This method allowed them to avoid the need for multiple transactions, which could have exposed their activities sooner. Also, the hackers tricked two signers into authorizing a seemingly normal USDT transfer, a malicious transaction designed to upgrade the Safe Multisig wallet. This led to the exploit transaction that upgraded the Multisig wallet to a malicious contract, ultimately transferring all the funds to the bag guys.

WazirX Response to the Breach

In response to the attack, WazirX temporarily suspended withdrawals of cryptocurrencies and Indian rupees on its platform. Likewise, the exchange affirmed that it is actively investigating the incident and will provide updates as the situation develops. 

Undoubtedly, the incident sent shockwaves through the Indian crypto community. Many highlighted the need for strong security measures to protect digital assets.