In a recent development, blockchain investigator ZachXBT has been appointed as one of four custodians for a multisig wallet holding hacked user funds of the GameFi protocol Munchables. This move comes as part of the final steps in the lockdrop refunds process, with the team undergoing a complete restructuring to enhance the security of the project’s funds and smart contracts. ZachXBT’s involvement adds a layer of trust and expertise to the funds’ custodianship, alongside existing custodians Manifold Trading, Selini Capital, and Munchables themselves. The appointment of ZachXBT follows a significant security breach that resulted in the loss and subsequent recovery of nearly $63 million in funds from the NFT game Munchables.
The security breach, which occurred on March 26, involved a rogue in-house developer known as “Werewolves0493” who compromised the game’s private wallets on the Ethereum layer-2 network Blast. After an analysis by ZachXBT, it was revealed that the exploiter was impersonating multiple developers within the Munchables team. Fortunately, the stolen funds were returned without a ransom demand, but Munchables is taking proactive steps to prevent similar incidents in the future. The addition of new multisignature signers, including investment firm Manifold Trading, market maker Selini Capital, and blockchain investigator ZachXBT, will ensure the safe return of users’ funds and oversee the project’s security upgrades.
Munchables developers from Manifold Trading and Selini Capital will conduct reaudits and upgrade to new contracts, and the Ethereum infrastructure firm Nethermind will audit the refreshed contracts before Munchables resumes operations. ZachXBT confirmed his temporary role as a multisig signer in response to his nomination, expressing support for the team’s approach to rotating signers as needed for security purposes. As Munchables prepares for its relaunch, the platform has announced initiatives to incentivize returning gamers and support entities involved in the recovery process. Returning gamers will be eligible for higher rewards, with financial support pledged to those involved in the recovery process.
Custodians and users who helped thwart the attack will receive ETH and future MUNCH donations for their assistance in asset recovery. Munchables plans to re-release with NFT migration plans and additional features to enhance user experience and ensure a secure environment for its community of gamers. In expressing their appreciation, the company quoted Confucius, emphasizing the value of seizing opportunities and making the most of life’s experiences. As a precaution, Munchables has warned users against interacting with websites claiming to offer refunds, as the company will directly send refunds to users’ wallets, ensuring a smooth and secure transition for users as they return to the platform.
