After WazirX’s staggering $230 million security breach, the Bharat Web3 Association (BWA) is taking decisive steps to bolster the crypto industry’s defenses. This breach, attributed to the notorious North Korean Lazarus Group, saw WazirX lose a significant portion of its assets on July 18.
In response, BWA Chairman Dilip Chenoy announced the formation of two new internal groups dedicated to cybersecurity and consumer protection.
The newly established groups will be composed of representatives from prominent members of the BWA, including WazirX, Coinbase, Polygon, and others. Their mission is to develop robust cybersecurity protocols and enhance consumer guidelines.
Chenoy emphasized the situation’s urgency, noting that the BWA has been in constant communication with WazirX and Liminal, the companies directly affected. He revealed that both companies have been instructed to conduct comprehensive forensic analyses and explore legal remedies. A third-party evaluation of these reports is also being recommended to ensure transparency and thoroughness.
The cybersecurity group will bring together chief information security officers (CISOs) from member firms to craft standard operating procedures (SOPs) aimed at preventing future breaches. This effort marks a significant shift from the BWA’s previous focus on financial regulations and anti-money laundering.
WazirX, now under heightened scrutiny, has paused crypto asset trading and withdrawals as it navigates this crisis. The exchange has proposed a recovery plan, which includes allowing customers to access 55% of their assets while converting the remaining 45% to USDT and locking them. This plan, however, has faced criticism from users and industry peers alike.
The breach has also drawn international attention, with the FBI contacting WazirX to investigate the attack. As the situation unfolds, the involvement of the Lazarus Group highlights the growing global threat of state-sponsored cyberattacks in the crypto space.
As the BWA’s new groups begin their work, the industry watches closely, hoping these measures will fortify defenses and restore confidence in the sector.
