ZachXBT, a well-known investigator in the blockchain industry, has been chosen as one of the four custodians for a multisig wallet that holds the hacked user funds of the GameFi protocol Munchables. The developers of Munchables announced on April 1st that ZachXBT would be the fourth signer on the multisig, completing the process of safely returning the user funds. The other custodians include Manifold Trading, Selini Capital, and Munchables itself. The Munchables staff also revealed that they will be bringing on Nethermind to conduct an audit of their updated contracts before relaunching the platform.
All of the users’ assets have been successfully recovered, and refunds will be directly returned to their wallets when the exploit took place. ZachXBT confirmed his temporary inclusion in the multisig as a signer during the initial phase. However, he also expressed his preference not to be a long-term signer and suggested that any signers who are rotated out would be announced by the team.
In addition to their assistance in recovering the assets, developers are offering “massive multiples on game rewards” as additional compensation to the depositors who return their funds. The platform also has plans to reintroduce itself with NFT migration strategies and undisclosed additional features. Furthermore, the custodians and users who helped prevent the attack will receive ETH and future MUNCH donations as a token of gratitude.
Referring to an ancient Chinese philosopher, Confucius, the Munchables developers quoted his wisdom in their statement. On March 26th, Munchables, which operates on the Ethereum layer-2 network Blast, fell victim to an exploit that resulted in a loss of $63 million. It was alleged that the company had hired a North Korean developer, known under the alias “Werewolves0493,” who was responsible for compromising the game’s private wallets. In a post-mortem analysis, ZachXBT revealed that the exploiter had impersonated four different developers from the Munchables team. Following the discovery, the malicious developer willingly shared the private keys to access the users’ funds without any conditions.
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