Blast Ecosystem’s Munchables Retrieves $62 Million from Developer Post Security Breach
In Brief
Munchables witnessed the return of all the funds siphoned to a multisig wallet after encountering a security breach earlier today.
Blast ecosystem’s Web3 gaming platform, Munchables, witnessed the return of all the funds siphoned to a multisig wallet after encountering a security breach caused by unauthorized transactions earlier today.
In the act of restitution, one of the project’s developers returned the stolen funds, transferring them back to a 2/3 multisig wallet. The transaction occurred following the developers’ agreement to unconditionally share the keys to all Munchables funds.
Centralized control within the project’s smart contracts had provided the mentioned developer with the capability to transfer funds under their control, which was exploited in this instance.
Earlier this morning, blockchain sleuth ZachXBT reported that Munchables experienced an attack resulting in the theft of 17,400 in ETH, valued at approximately $62.5 million. He further revealed the address of the perpetrator holding the funds. This incident represented one of the largest losses due to a security breach recorded in 2024 thus far.
In response, Munchables made an official announcement, saying, “We are monitoring the movement and endeavoring to obstruct the transaction. Further updates will be provided as soon as additional information becomes available.”
After investigation, ZachXBT reported that four developers employed by the project were found to have connections to the attackers and may potentially be the same person. According to him, these developers have mutually recommended each other for their roles and have been observed making regular payments to the same two exchange deposit addresses to support each other’s wallets.
Before the security breach, Munchables held $95.62 million in total value locked (TVL), as reported by the cryptocurrency data tracker DeFiLlama.
Blast Ecosystem Faces Escalating Security Challenges
Blast is an Ethereum Layer 2 protocol established by Tieshun Roquerre, also known for founding the non-fungible token (NFT) marketplace Blur. Before its official launch on mainnet earlier this year, early access users contributed to Blast accumulating $2.3 billion in TVL.
This incident follows several other security breaches associated with the Blast ecosystem, which has been drawing significant attention from both users and malicious actors.
Recently, the Blast ecosystem experienced its first rug pull event. RiskOnBlast, an anonymous account purportedly representing a gambling and exchange platform, raised $1.3 million in ETH from investors before disappearing abruptly.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
