ZachXBT, a well-known blockchain investigator, was added as one of four keepers of a multi-sig wallet holding stolen user funds from GameFi protocol Munchables.
Munchables developers revealed this in an April 1 update. “ZachXBT will join as the fourth signer on the multisig, completing the safe return of user funds,” they stated. The other keepers are Manifold Trading, Selini Capital, and Munchables. “Nethermind will audit our refreshed contracts before relaunching,” the Munchables team added.
All user assets were recovered and refunds will go directly to wallets at the time of the exploit. The developers made this clear. However, their announcement had a straightforward tone, describing the situation clearly.
However, ZachXBT affirmed, “I’ll temporarily join the multisig as a signer for the initial period.” He added, “However, I don’t want to be on the multisig long-term; any rotated signers should be announced by the team.”
ZachXBT Analyzes Munchables Exploit
Additionally, Developers teased “massive multiples on game rewards” as extra pay for returning depositors. The platform will “re-release with NFT migration plans and additional features, soon revealed.” Meanwhile, custodians and users who helped thwart the attack will get “ETH and future MUNCH donations” for assisting asset recovery. Quoting Confucius, an ancient Chinese philosopher, Munchables developers stated:
“We have two lives to munch, and the second begins when we realise we only have one.”
On Mar 26, Munchables got exploited for $63 million. However, this was after they hired a North Korean developer called “Werewolves0943”. He worked on Munchables, which is built on Ethereum layer-2 network Blast. This developer then took control of the game’s private wallets.
In a later analysis, ZachXBT said the exploiter pretended to be four different Munchables developers. After being found out, the bad developer shared private keys. However, these keys let the dev access users’ funds without conditions.
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