ZachXBT, a well-known investigator in the blockchain world, has been chosen as one of the four custodians for a multi-signature wallet that holds the hacked user funds of the GameFi protocol, Munchables. The developers of Munchables announced on April 1st that ZachXBT will be the fourth signer on the multisig, which will ensure the safe return of the funds. The other custodians include Manifold Trading, Selini Capital, and Munchables itself. Additionally, Nethermind will be brought on board to conduct an audit of all the updated contracts before the platform goes live again.
All of the users’ assets have been successfully recovered, and the refunds will be directly returned to their wallets when the exploit occurred. ZachXBT confirmed his temporary role as a signer for the initial period and expressed his preference not to be a long-term member of the multisig. He expects any changes to the signers to be announced by the team.
In order to incentivize the return of the deposited funds, the developers are offering “massive multiples on game rewards” to the depositors. They also plan to re-release the platform with NFT migration plans and additional features that will be disclosed soon. Furthermore, the custodians and users who assisted in preventing the attack will receive ETH and future MUNCH donations as a token of appreciation for their help in recovering the assets.
Reflecting on the incident, the developers of Munchables quoted the ancient Chinese philosopher, Confucius, and emphasized the importance of learning from mistakes. On March 26th, Munchables, which operates on the Ethereum layer-2 network Blast, fell victim to a $63 million exploit. It was alleged that the exploit was carried out by a North Korean developer who was hired by Munchables under the pseudonym “Werewolves0943.” In a post-mortem analysis, ZachXBT revealed that the exploiter had impersonated four different developers from the Munchables team. After being discovered, the malicious developer willingly shared the private keys that granted access to the users’ funds without any conditions.
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