$5.9M Crypto Protection Fund Unveiled by CoinDCX

CoinDCX Enhances Security and Expands to Middle East

In response to the recent $230 million hack on WazirX, CoinDCX has established a $5.9 million Crypto Investors Protection Fund (CIPF) to compensate users in case of security breaches. The fund aims to set high security standards and ensure customer asset protection. CoinDCX will contribute 2% of its brokerage income to the CIPF annually and plans to review and potentially increase the fund size over time.

Sumit Gupta, Co-Founder of CoinDCX, emphasized the importance of advanced security measures and encouraged other exchanges to adopt similar protections. CoinDCX, registered with the Financial Intelligence Unit (FIU) and ISO certified, maintains a strong security posture with diversified assets across multiple vaults.

CoinDCX Has Acquired BitOasis

India-based crypto exchange CoinDCX has fully acquired BitOasis, a Middle East-focused crypto platform, marking its first entry into the MENA region. The transaction value was not disclosed. BitOasis, which serves 15 countries, will retain its brand and leadership team. 

This acquisition aims to strengthen BitOasis's regional position and enhance its services. The UAE, aiming to become a global crypto hub, established VARA in 2022 to regulate the virtual asset sector. BitOasis, founded in 2016, offers broker-dealer services and recently obtained a license from the Central Bank of Bahrain.

Expert Discuss Implications & Security Measures Post WazirX $230M Hack

A popular Indian crypto trading platform called WazirX was hacked recently and the attackers made away with more than $230 million. This particular event, one of the biggest hacks in India, has prompted significant reflection on the security and investor safeguards in the crypto space.

A panel discussion on ETMarkets live stream featured industry experts, including Dilip Chenoy, Ashish Singhal from CoinSwitch, Sumit Gupta from CoinDCX, and Edul Patel from Mudrex. Edul provided an analysis of the hack, revealing that malicious actors, likely the Lazarus Group, accessed a secure wallet and executed unauthorized transactions. He stressed the need for advanced security measures.

Ashish and Sumit discussed the broader implications for crypto exchanges, noting the evolving security challenges. They emphasized the importance of working with top custody providers and continuously updating security practices to protect user funds.

Conclusion

In response to the $230 million hack on WazirX, CoinDCX has made improvements to security and user protection. They introduced a $5. 9 million Crypto Investors Protection Fund (CIPF) and entered the Middle East market by acquiring BitOasis. Security measures are highlighted as the key concern in the industry, and frequent updates are also mentioned as the priority to protect users’ money in the context of the developing crypto space.

Also Read:  WazirX Abandons Loss Plan, Files FIR Post $230M Hack