Centre Proposes New Bills for Criminal Law

Overview:

WazirX is the platform for cryptocurrencies, based in India that has been hacked, and it made a loss of more than $230 million in cryptocurrency. This case concerned an unauthorized transaction with a multisignature or multisig, wallet controlled through Liminal’a digital asset management platform. These attacking incidents have thereafter raised more questions on the security of the Cryptocurrency exchanges and efficiency of the existing policies and laws.

Wallet Configuration and Security Measures

This wallet was breached and had a multisig setting meaning that more than one signature was needed to authorize a transaction. Specifically, it had six signatories: five are funded by WazirX and one is funded by Liminal. Every transaction needed the approval of at least three signatories of WazirX, all of whom had addressed security concerns by using Ledger’s hardware wallets; while the Liminal, too, had a signatory, for approval.

To further increase the level of security of the transactions, a whitelisting policy was introduced, only limited addresses were authorized to receive funds. This system was rather vulnerable, and the attackers managed to grasp the discrepancy between the information available through Liminal’s interface and the content of the transaction to seize unauthorized control over the wallet and implement the theft.

Modus Operandi: Attack Mechanics

The cyber attack appears to have been carefully carried out, with preliminary investigations suggesting the following tactics: 

• Payload Manipulation: The attackers apparently substituted the transaction’s payload during signing; hence, they can reroute the collected funds into an unrelated wallet. 

• Chain Hopping: To make it much harder to track their movements, the attackers split large amounts of money across multiple blockchains and broke tens of thousands of dollars into thousands of transactions involving different cryptocurrencies. This technique makes it difficult to trace people and things. 

• Zero Balance Transactions: There were also some instances where it ended up with no Ethereum (ETH) in the balance and such wallets also in use for the purpose of further anonymization of the transactions.

• Analysis of the blockchain data suggested the enemy might have been making the preparations for this attack for several days prior to their attack and involved a high amount of planning. 

Actions taken by WazirX:

Following the attack, WazirX implemented a series of immediate actions:

• User Notifications: The users were immediately notified of the occurrence of the breach and the possible risk it posed to them. 

• Law Enforcement Engagement: The matters were reported to the National Cyber Crime Reporting Portal and specific authorities of which the Financial Intelligence Unit (FIU) and the Computer Emergency Response Team (CERT-In). 

• Service Suspension: WazirX had suspended all its trading operations and user deposits’ and withdrawals’ to minimize further cases and investigate. 

• Global Outreach: The exchange contacted more than 500 cryptocurrency exchanges and requested to blacklist the wallet’s addresses linked to the theft. 

• Bounty Program: A bounty program was announced to encourage people to share information that can enable the authorities to retrieve the stolen money. A maximum of 23 million dollars was placed on the bounty. 

Further  Investigations 

WazirX stated that it has contracted the services of cybersecurity professionals to help in the prosecution process of identifying and compensating for the losses. The exchange is still investigating the forensic data and working with the police for tracking the stolen assets. Nevertheless, the prospects of full recovery may be quite questionable primarily because of complexity of the attack and the methods used by the attackers. 

Precautionary measures: 

 The WazirX cyber attack clearly implies that there is the necessity to improve the security and the regulation of the cryptocurrency industry. As exchanges become increasingly targeted by hackers, there is a pressing need for: 

• Stricter Security Protocols: The commitment to technical innovations, such as integration of MFA, as well as constant monitoring of the users’ wallets’ activities. 

• Regulatory Oversight: Formalization of the laws that require proper security for the cryptocurrency exchange platforms to safeguard their users as well as their investments. 

• Community Awareness: To bypass such predicaments, there is a need to study on emergent techniques in spreading awareness, particularly in cases of scams or phishing attempts that are likely to follow such breaches. 

Conclusion:

The cyber attack on WazirX in the field of cryptocurrency market, shows weaknesses and provides valuable lessons for enhancing the security.  This attack highlights critical vulnerabilities in cryptocurrency exchanges, even though employing advanced security measures like multisignature wallets and whitelisting policies. The attack's complexity, involving payload manipulation, chain hopping, and zero balance transactions, underscores the attackers' meticulous planning and the challenges in tracing stolen assets. This case brings a strong message regarding the necessity of solid security measures, and constant attention to security in the rapidly growing world of digital assets. Furthermore, the incident highlights the importance of community awareness and education on emerging threats like scams and phishing attempts, which usually follow such breaches. By fostering a culture of vigilance and knowledge, the cryptocurrency community can better defend against future attacks.

Reference:

https://wazirx.com/blog/important-update-cyber-attack-incident-and-measures-to-protect-your-assets/

https://www.moneycontrol.com/news/opinion/the-230-million-crypto-theft-at-wazirx-is-a-wake-up-call-for-indian-regulators-government-12772563.html

https://www.linkedin.com/pulse/wazirx-cyberattack-in-depth-analysis-jyqxf

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The race for global leadership in AI is in full force. As China and the US emerge as the ‘AI Superpowers’ in the world, the world grapples with the questions around AI governance, ethics, regulation, and safety. Some are calling this an ‘AI Arms Race.’ Most of the applications of these AI systems are in large language models for commercial use or military applications. Countries like Germany, Japan, France, Singapore, and India are now participating in this race and are not mere spectators. 

The Government of India’s Ministry of Electronics and Information Technology (MeitY) has launched the IndiaAI Mission, an umbrella program for the use and development of AI technology. This MeitY initiative lays the groundwork for supporting an array of AI goals for the country. The government has allocated INR 10,300 crore for this endeavour. This mission includes pivotal initiatives like the IndiaAI Compute Capacity, IndiaAI Innovation Centre (IAIC), IndiaAI Datasets Platform, IndiaAI Application Development Initiative, IndiaAI FutureSkills, IndiaAI Startup Financing, and Safe & Trusted AI.

There are several challenges and opportunities that India will have to navigate and capitalize on to become a significant player in the global AI race. The various components of India’s ‘AI Stack’ will have to work well in tandem to create a robust ecosystem that yields globally competitive results. The IndiaAI mission focuses on building large language models in vernacular languages and developing compute infrastructure. There must be more focus on developing good datasets and research as well.

Resource Allocation and Infrastructure Development

The government is focusing on building the elementary foundation for AI competitiveness. This includes the procurement of AI chips and compute capacity, about 10,000 graphics processing units (GPUs), to support India’s start-ups, researchers, and academics. These GPUs have been strategically distributed, with 70% being high-end newer models and the remaining 30% comprising lower-end older-generation models. This approach ensures that a robust ecosystem is built, which includes everything from cutting-edge research to more routine applications. A major player in this initiative is Yotta Data Services, which holds the largest share of 9,216 GPUs, including 8,192 Nvidia H100s. Other significant contributors include Amazon AWS's managed service providers, Jio Platforms, and CtrlS Datacenters. 

Policy Implications: Charting a Course for Tech Sovereignty and Self-reliance

With this government initiative, there is a concerted effort to develop indigenous AI models and reduce tech dependence on foreign players. There is a push to develop local Large Language Models and domain-specific foundational models, creating AI solutions that are truly Indian in nature and application. Many advanced chip manufacturing takes place in Taiwan, which has a looming China threat. India’s focus on chip procurement and GPUs speaks to a larger agenda of self-reliance and sovereignty, keeping in mind the geopolitical calculus. This is an important thing to focus on, however, it must not come at the cost of developing the technological ‘know-how’ and research. 

Developing AI capabilities at home also has national security implications. When it comes to defence systems, control over AI infrastructure and data becomes extremely important. The IndiaAI Mission will focus on safe and trusted AI, including developing frameworks that fit the Indian context. It has to be ensured that AI applications align with India's security interests and can be confidently deployed in sensitive defence applications.

The big problem here to solve here is the ‘data problem.’ There must be a focus on developing strategies to mitigate the data problem that disadvantages the Indian AI ecosystem. Some data problems are unique to India, such as generating data in local languages. While other problems are the ones that appear in every AI ecosystem development lifecycle namely generating publicly available data and licensed data. India must strengthen its ‘Digital Public Infrastructure’ and data commons across sectors and domains.

India has proposed setting up the India Data Management Office to serve as India’s data regulator as part of its draft National Data Governance Framework Policy. The MeitY IndiaAI expert working group report also talked about operationalizing the India Datasets Platform and suggested the establishment of data management units within each ministry.

Economic Impact: Growth and Innovation

The government’s focus on technology and industry has far-reaching economic implications. There is a push to develop the AI startup ecosystem in the country. The IndiaAI mission heavily focuses on inviting ideas and projects under its ambit. The investments will strengthen the IndiaAI startup financing system, making it easier for nascent AI businesses to obtain capital and accelerate their development from product to market. Funding provisions for industry-led AI initiatives that promote social impact and stimulate innovation and entrepreneurship are also included in the plan. The government press release states, "The overarching aim of this financial outlay is to ensure a structured implementation of the IndiaAI Mission through a public-private partnership model aimed at nurturing India’s AI innovation ecosystem.”

The government also wants to establish India as a hub for sustainable AI innovation and attract top AI talent from across the globe. One crucial aspect that needs to be worked on here is fostering talent and skill development. India has a unique advantage, that is, top-tier talent in STEM fields. Yet we suffer from a severe talent gap that needs to be addressed on a priority basis. Even though India is making strides in nurturing AI talents, out-migration of tech talent is still a reality. Once the hardware manufacturing “goods-side” of economics transitions to service delivery in the field of AI globally, India will need to be ready to deploy its talent. Several structural and policy interfaces, like the New Education Policy and industry-academic partnership frameworks, allow India to capitalize on this opportunity. 

India’s talent strategy must be robust and long-term, focusing heavily on multi-stakeholder engagement. The government has a pivotal role here by creating industry-academia interfaces and enabling tech hubs and innovation parks.

India's Position in the Global AI Race

India’s foreign policy and geopolitical standpoint have been one of global cooperation. This must not change when it comes to AI. Even though this has been dubbed as the “AI Arms Race,” India should encourage worldwide collaboration on AI R&D through collaboration with other countries in order to strengthen its own capabilities. India must prioritise more significant open-source AI development, work with the US, Europe, Australia, Japan, and other friendly countries to prevent the unethical use of AI and contribute to the formation of a global consensus on the boundaries for AI development. 

The IndiaAI Mission will have far-reaching implications for India’s diplomatic and economic relations. The unique proposition that India comes with is its ethos of inclusivity, ethics, regulation, and safety from the get-go. We should keep up the efforts to create a powerful voice for the Global South in AI. The IndiaAI Mission marks a pivotal moment in India's technological journey. Its success could not only elevate India's status as a tech leader but also serve as a model for other nations looking to harness the power of AI for national development and global competitiveness. In conclusion, the IndiaAI Mission seeks to strengthen India's position as a global leader in AI, promote technological independence, guarantee the ethical and responsible application of AI, and democratise the advantages of AI at all societal levels.

References

• ​​Ashwini Vaishnaw to launch IndiaAI portal, 10 firms to provide 14,000 GPUs. (2025, February 17). https://www.business-standard.com/. Retrieved February 25, 2025, from https://www.business-standard.com/industry/news/indiaai-compute-portal-ashwini-vaishnaw-gpu-artificial-intelligence-jio-125021700245_1.html
• Global IndiaAI Summit 2024 being organized with a commitment to advance responsible development, deployment and adoption of AI in the country. (n.d.). https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2029841
• India to Launch AI Compute Portal, 10 Firms to Supply 14,000 GPUs. (2025, February 17). apacnewsnetwork.com. https://apacnewsnetwork.com/2025/02/india-to-launch-ai-compute-portal-10-firms-to-supply-14000-gpus/
• INDIAai | Pillars. (n.d.). IndiaAI. https://indiaai.gov.in/
• IndiaAI Innovation Challenge 2024 | Software Technology Park of India | Ministry of Electronics & Information Technology Government of India. (n.d.). http://stpi.in/en/events/indiaai-innovation-challenge-2024
• IndiaAI Mission To Deploy 14,000 GPUs For Compute Capacity, Starts Subsidy Plan. (2025, February 17). www.businessworld.in. Retrieved February 25, 2025, from https://www.businessworld.in/article/indiaai-mission-to-deploy-14000-gpus-for-compute-capacity-starts-subsidy-plan-548253
• India’s interesting AI initiatives in 2024: AI landscape in India. (n.d.). IndiaAI. https://indiaai.gov.in/article/india-s-interesting-ai-initiatives-in-2024-ai-landscape-in-india
• Mehra, P. (2025, February 17). Yotta joins India AI Mission to provide advanced GPU, AI cloud services. Techcircle. https://www.techcircle.in/2025/02/17/yotta-joins-india-ai-mission-to-provide-advanced-gpu-ai-cloud-services/
• IndiaAI 2023: Expert Group Report – First Edition. (n.d.). IndiaAI. https://indiaai.gov.in/news/indiaai-2023-expert-group-report-first-edition
• Satish, R., Mahindru, T., World Economic Forum, Microsoft, Butterfield, K. F., Sarkar, A., Roy, A., Kumar, R., Sethi, A., Ravindran, B., Marchant, G., Google, Havens, J., Srichandra (IEEE), Vatsa, M., Goenka, S., Anandan, P., Panicker, R., Srivatsa, R., . . . Kumar, R. (2021). Approach Document for India. In World Economic Forum Centre for the Fourth Industrial Revolution, Approach Document for India [Report]. https://www.niti.gov.in/sites/default/files/2021-02/Responsible-AI-22022021.pdf
• Stratton, J. (2023, August 10). Those who solve the data dilemma will win the A.I. revolution. Fortune. https://fortune.com/2023/08/10/workday-data-ai-revolution/
• Suri, A. (n.d.). The missing pieces in India’s AI puzzle: talent, data, and R&D. Carnegie Endowment for International Peace. https://carnegieendowment.org/research/2025/02/the-missing-pieces-in-indias-ai-puzzle-talent-data-and-randd?lang=en
• The AI arms race. (2024, February 13). Financial Times. https://www.ft.com/content/21eb5996-89a3-11e8-bf9e-8771d5404543

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Introduction

The Information Technology (IT) Ministry has tested a new parental control app called ‘SafeNet’ that is intended to be pre-installed in all mobile phones, laptops and personal computers (PCs). The government's approach shows collaborative efforts by involving cooperation between Internet service providers (ISPs), the Department of School Education, and technology manufacturers to address online safety concerns. Campaigns and the proposed SafeNet application aim to educate parents about available resources for online protection and safeguarding their children.

The Need for SafeNet App

SafeNet Trusted Access is an access management and authentication service that ensures no user is a target by allowing you to expand authentication to all users and apps with diverse authentication capabilities. SafeNet is, therefore, an arsenal of tools, each meticulously crafted to empower guardians in the art of digital parenting. With the finesse of a master weaver, it intertwines content filtering with the vigilant monitoring of live locations, casting a protective net over the vulnerable online experiences of the children. The ability to oversee calls and messages adds another layer of security, akin to a watchful sentinel standing guard over the gates of communication. Some pointers regarding the parental control app that can be taken into consideration are as follows.

1.   Easy to use and set up: The app should be useful, intuitive, and easy to use. The interface plays a significant role in achieving this goal. The setup process should be simple enough for parents to access the app without any technical issues. Parents should be able to modify settings and monitor their children's activity with ease.

2.   Privacy and data protection: Considering the sensitive nature of children's data, strong privacy and data protection measures are paramount. From the app’s point of view, strict privacy standards include encryption protocols, secure data storage practices, and transparent data handling policies with the right of erasure to protect and safeguard the children's personal information from unauthorized access.

3.   Features for Time Management: Effective parental control applications frequently include capabilities for regulating screen time and establishing use limitations. The app will evaluate if the software enables parents to set time limits for certain applications or devices, therefore promoting good digital habits and preventing excessive screen time.

4.   Comprehensive Features of SafeNet: The app's commitment to addressing the multifaceted aspects of online safety is reflected in its robust features. It allows parents to set content filters with surgical precision, manage the time their children spend in the digital world, and block content that is deemed age-inappropriate. This reflects a deep understanding of the digital ecosystem's complexities and the varied threats that lurk within its shadows.

5.   Adaptable to the needs of the family: In a stroke of ingenuity, SafeNet offers both parent and child versions of the app for shared devices. This adaptability to diverse family dynamics is not just a nod to inclusivity but a strategic move that enhances its usability and effectiveness in real-world scenarios. It acknowledges the unique tapestry of family structures and the need for tools that are as flexible and dynamic as the families they serve.

6.   Strong Support From Government: The initiative enjoys a chorus of support from both government and industry stakeholders, a symphony of collaboration that underscores the collective commitment to the cause. Recommendations for the pre-installation of SafeNet on devices by an industry consortium resonate with the directives from the Prime Minister's Office (PMO),creating a harmonious blend of policy and practice. The involvement of major telecommunications players and Internet service providers underscores the industry's recognition of the importance of such initiatives, emphasising a collaborative approach towards deploying digital safeguarding measures at scale.

Recommendations

The efforts by the government to implement parental controls a recommendable as they align with societal goals of child welfare and protection. This includes providing parents with tools to manage and monitor their children's Internet usage to address concerns about inappropriate content and online risks. The following suggestions are made to further support the government's initiative:

1.    The administration can consider creating a verification mechanism similar to how identities are verified when mobile SIMS are issued. While this certainly makes for a longer process, it will help address concerns about the app being misused for stalking and surveillance if it is made available to everyone as a default on all digital devices.

2.    Parental controls are available on several platforms and are designed to shield, not fetter. Finding the right balance between protection and allowing for creative exploration is thus crucial to ensuring children develop healthy digital habits while fostering their curiosity and learning potential. It might be helpful to the administration to establish updated policies that prioritise the privacy-protection rights of children so that there is a clear mandate on how and to what extent the app is to be used.

3.    Policy reforms can be further supported through workshops, informational campaigns, and resources that educate parents and children about the proper use of the app, the concept of informed consent, and the importance of developing healthy, transparent communication between parents and children.

Conclusion

Safety is a significant step towards child protection and development. Children have to rely on adults for protection and cannot identify or sidestep risk. In this context, the United Nations Convention on the Rights of the Child emphasises the matter of protection efforts for children, which notes that children have the "right to protection". Therefore, the parental safety app will lead to significant concentration on the general well-being and health of the children besides preventing drug misuse. On the whole, while technological solutions can be helpful, one also needs to focus on educating people on digital safety, responsible Internet use, and parental supervision.  

References

• https://www.hindustantimes.com/india-news/itministry-tests-parental-control-app-progress-to-be-reviewed-today-101710702452265.html
• https://www.htsyndication.com/ht-mumbai/article/it-ministry-tests-parental-control-app%2C-progress-to-be-reviewed-today/80062127
• https://www.varindia.com/news/it-ministry-to-evaluate-parental-control-software
• https://www.medianama.com/2024/03/223-indian-government-to-incorporate-parental-controls-in-data-usage/

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