Munchables Rogue Developer Theft: Difference between revisions

From Quadriga Initiative Cryptocurrency Hacks, Scams, and Frauds Repository
Jump to navigation Jump to search
(Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/munchablesroguedevelopertheft.php}} {{Unattributed Sources}} thumb|Munchables Logo/HomepageMunchables was an NFT game built on the Blast blockchain. Shortly after the project had garnered a significant investment, it was found that one of the developers had created and exploited a back door allowing them the ability to withdraw all of the funds. After some heated coaxing, t...")
 
(30 minutes. Started building up wiki article. About section information spread around. Integrating multiple tweets and information from Rekt news article. Thinking about Tweet promotion, but hold off for now as the article is not really ready yet.)
Line 1: Line 1:
{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/munchablesroguedevelopertheft.php}}
{{Case Study Under Construction}}{{Unattributed Sources}}
{{Unattributed Sources}}


[[File:Munchables.jpg|thumb|Munchables Logo/Homepage]]Munchables was an NFT game built on the Blast blockchain. Shortly after the project had garnered a significant investment, it was found that one of the developers had created and exploited a back door allowing them the ability to withdraw all of the funds. After some heated coaxing, the developer was ultimately found to be willing to return all of the funds.
[[File:Munchables.jpg|thumb|Munchables Logo/Homepage]]Munchables was an NFT game built on the Blast blockchain. Shortly after the project had garnered a significant investment, it was found that one of the developers had created and exploited a back door allowing them the ability to withdraw all of the funds. After some heated coaxing, the developer was ultimately found to be willing to return all of the funds.


This is a global/international case not involving a specific country.<ref name="rektnews-13323" /><ref name="zachxbttwitter-13324" /><ref name="munchablestwitter-13325" /><ref name="0xshabbytwitter-13326" /><ref name="munchablestwitter-13327" /><ref name="munchablesapp-13328" /><ref name="munchables-13329" /><ref name="munchables-13330" /><ref name="0xquittwitter-13331" />
This is a global/international case not involving a specific country.<ref name="munchablestwitter-13327" /><ref name="munchablesapp-13328" /><ref name="munchables-13329" /><ref name="munchables-13330" /><ref name="0xquittwitter-13331" /><ref name=":0">[https://twitter.com/TokensWolf/status/1773630231443603623 TokensWolf - "Munchables exploited. #rekt for 11 ETH. My pets will be never be petted again" - Twitter] (Accessed Apr 24, 2024)</ref>


== About Munchables ==
== About Munchables ==
Line 30: Line 29:
"It's schnibble time
"It's schnibble time
Dive deeper into the realms of the Munchables. Learn how to nurture them, level up, and unlock their true potential. But beware of the cute - they are not all as harmless as they seem."
Dive deeper into the realms of the Munchables. Learn how to nurture them, level up, and unlock their true potential. But beware of the cute - they are not all as harmless as they seem."
"Four different devs hired by the Munchables team and linked to the exploiter are likely all the same person"
"The Blast L2 Big Bang award-winning project Munchables was exploited for $62.5M by a rogue dev. Funds retrieved from dev within a few hours in a rollercoaster ride of a day."
"Munchables has been compromised. We are tracking movements and attempting to stop the the transactions. We will update as soon as we know more."
"We can confirm that the full refund distribution process has now been completed.
Next up is processing the Blast rewards to all OG lockdrop players.
Then, we begin the next chapter.
Get ready to Munch"
This is a global/international case not involving a specific country.
The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.
Include:
* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.
Don't Include:
* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.


== The Reality ==
== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:
This was the second attack on a Blast protocol within a week<ref name="rektnews-13323" />.


* When the service was actually started (if different than the "official story").
It appears that the Munchables team had mistakenly hired an individual with 4 separate identities<ref name="zachxbttwitter-13324" />.
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.


== What Happened ==
== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
A rogue developer installed a backdoor in the Munchables project, which they later exploited to withdraw $62.5 million<ref name="rektnews-13323" />.
{| class="wikitable"
{| class="wikitable"
|+Key Event Timeline - Munchables Rogue Developer Theft
|+Key Event Timeline - Munchables Rogue Developer Theft
Line 82: Line 45:
|March 26th, 2024 3:37:00 PM MDT
|March 26th, 2024 3:37:00 PM MDT
|Compromise Tweet
|Compromise Tweet
|The compromise is noted in a public tweet. The team is "tracking movements and attempting to stop the the transactions".
|The compromise is noted in a public tweet<ref name="munchablestwitter-13325" />. The Munchables team is "tracking movements and attempting to stop the the transactions"<ref name="munchablestwitter-13325" />.
|-
|-
|March 26th, 2024 10:29:00 PM MDT
|March 26th, 2024 10:29:00 PM MDT
|ZachXBT Tweet
|ZachXBT Tweet
|ZachXBT notes a suspicion that the developers are most likely all the same person.
|ZachXBT notes a suspicion that the developers are most likely all the same person<ref name="zachxbttwitter-13324" />.
|-
|March 27th, 2024 3:04:00 PM MDT
|Rekt News Article
|Rekt News captures details of the exploit and return of funds<ref name="rektnews-13323" />.
|}
|}


== Technical Details ==
== Technical Details ==
This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?
 
 
GitHub usernames<ref name="zachxbttwitter-13324" />:
 
* NelsonMurua913
* Werewolves0493
* BrightDragon0719
* Super1114
 
Ethereum addresses<ref name="zachxbttwitter-13324" />:
 
* 0x4890e32a6A631Ba451b7823dAd39E88614f59C97
* 0x6BE96b68A46879305c905CcAFFF02B2519E78055
* 0x9976Fe30DAc6063666eEA87133dFad1d5ec27c5E
 
Exchange deposit addresses<ref name="zachxbttwitter-13324" />:
 
* 0x84e86b461a3063ad255575b30756bdc4d051a04b
* 0xe362130d4718dc9f86c802ca17fe94041f1cfc77
 
 
 
 
"Four different devs hired by the Munchables team and linked to the exploiter are likely all the same person"
 
"The Blast L2 Big Bang award-winning project Munchables was exploited for $62.5M by a rogue dev. Funds retrieved from dev within a few hours in a rollercoaster ride of a day."


== Total Amount Lost ==
== Total Amount Lost ==
Line 98: Line 90:


== Immediate Reactions ==
== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?
The Munchables team quickly reported the compromise and attempted to stop the transactions<ref name="munchablestwitter-13325" /><ref name="rektnews-13323" />. There were rumors about the possibility that a North Korean developer, hired by mistake, was behind the attack<ref name="rektnews-13323" />. ZachXBT took action against the rogue developer, possibly saving the day<ref name="rektnews-13323" />.<blockquote>"Munchables has been compromised. We are tracking movements and attempting to stop the the transactions. We will update as soon as we know more."</blockquote>
 
=== Reactions On Twitter ===
<ref name=":0" /><ref name="0xshabbytwitter-13326" /><blockquote>Munchables exploited. #rekt for 11 ETH. My pets will be never be petted again </blockquote><blockquote>Blast devs can surely revert the tx, after all it's a centralized rollup?</blockquote>
 
=== Investigation Into Developer ===
ZachXBT found suspicion with the development team hired by Munchables<ref name="zachxbttwitter-13324" />.<blockquote>Four different devs hired by the Munchables team and linked to the exploiter are likely all the same person as they:
 
>recommended each other for the job
 
>regularly transferred payments to the same two exchange deposit addresses
 
>funded each others wallets</blockquote>


== Ultimate Outcome ==
== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?
Funds were eventually retrieved from the developer, who was exposed by ZachXBT<ref name="rektnews-13323" />. The developer agreed to return the funds, and roughly $60.5 million was transferred back to Munchables<ref name="rektnews-13323" />.


== Total Amount Recovered ==
== Total Amount Recovered ==
"We can confirm that the full refund distribution process has now been completed.
Next up is processing the Blast rewards to all OG lockdrop players.
Then, we begin the next chapter.
Get ready to Munch"
The total amount recovered has been estimated at $62,500,000 USD.
The total amount recovered has been estimated at $62,500,000 USD.
What funds were recovered? What funds were reimbursed for those affected users?


== Ongoing Developments ==
== Ongoing Developments ==
Line 126: Line 136:


== References ==
== References ==
<references><ref name="rektnews-13323">[https://rekt.news/munchables-rekt/ Rekt - Munchables - REKT] (Apr 23, 2024)</ref>
<references>
 
<ref name="rektnews-13323">[https://rekt.news/munchables-rekt/ Rekt - Munchables - REKT] (Apr 23, 2024)</ref>
<ref name="zachxbttwitter-13324">[https://twitter.com/zachxbt/status/1772843238539325947 @zachxbt Twitter] (Apr 23, 2024)</ref>
<ref name="zachxbttwitter-13324">[https://twitter.com/zachxbt/status/1772843238539325947 ZachXBT - "Four different devs hired by the Munchables team and linked to the exploiter are likely all the same person" - Twitter] (Apr 23, 2024)</ref>
 
<ref name="munchablestwitter-13325">[https://twitter.com/_munchables_/status/1772739713687752761 Munchables - "Munchables has been compromised. We are tracking movements and attempting to stop the the transactions. We will update as soon as we know more." - Twitter] (Accessed Apr 23, 2024)</ref>
<ref name="munchablestwitter-13325">[https://twitter.com/_munchables_/status/1772739713687752761 @_munchables_ Twitter] (Apr 23, 2024)</ref>
<ref name="0xshabbytwitter-13326">[https://twitter.com/0xshabby/status/1772746523719381281 0xshabby - "Blast devs can surely revert the tx, after all it's a centralized rollup?" - Twitter] (Apr 23, 2024)</ref>
 
<ref name="0xshabbytwitter-13326">[https://twitter.com/0xshabby/status/1772746523719381281 @0xshabby Twitter] (Apr 23, 2024)</ref>
 
<ref name="munchablestwitter-13327">[https://twitter.com/_munchables_/status/1776019916254310574 @_munchables_ Twitter] (Apr 23, 2024)</ref>
<ref name="munchablestwitter-13327">[https://twitter.com/_munchables_/status/1776019916254310574 @_munchables_ Twitter] (Apr 23, 2024)</ref>
<ref name="munchablesapp-13328">[https://www.munchables.app/ Munchables | Start Your Mission] (Apr 23, 2024)</ref>
<ref name="munchablesapp-13328">[https://www.munchables.app/ Munchables | Start Your Mission] (Apr 23, 2024)</ref>
<ref name="munchables-13329">[https://munchables.gitbook.io/munchables Welcome to Munchables | Munchables] (Apr 23, 2024)</ref>
<ref name="munchables-13329">[https://munchables.gitbook.io/munchables Welcome to Munchables | Munchables] (Apr 23, 2024)</ref>
<ref name="munchables-13330">[https://munchables.gitbook.io/munchables/fundamentals/concept Concept | Munchables] (Apr 23, 2024)</ref>
<ref name="munchables-13330">[https://munchables.gitbook.io/munchables/fundamentals/concept Concept | Munchables] (Apr 23, 2024)</ref>
 
<ref name="0xquittwitter-13331">[https://twitter.com/0xQuit/status/1772764460647846273 @0xQuit Twitter] (Apr 23, 2024)</ref>
<ref name="0xquittwitter-13331">[https://twitter.com/0xQuit/status/1772764460647846273 @0xQuit Twitter] (Apr 23, 2024)</ref></references>
</references>

Revision as of 10:38, 24 April 2024

Notice: This page is a new case study and some aspects have not been fully researched. Some sections may be incomplete or reflect inaccuracies present in initial sources. Please check the References at the bottom for further information and perform your own additional assessment. Please feel free to contribute by adding any missing information or sources you come across. If you are new here, please read General Tutorial on Wikis or Anatomy of a Case Study for help getting started.

Notice: This page contains sources which are not attributed to any text. The unattributed sources follow the initial description. Please assist by visiting each source, reviewing the content, and placing that reference next to any text it can be used to support. Feel free to add any information that you come across which isn't present already. Sources which don't contain any relevant information can be removed. Broken links can be replaced with versions from the Internet Archive. See General Tutorial on Wikis, Anatomy of a Case Study, and/or Citing Your Sources Guide for additional information. Thanks for your help!

Munchables Logo/Homepage

Munchables was an NFT game built on the Blast blockchain. Shortly after the project had garnered a significant investment, it was found that one of the developers had created and exploited a back door allowing them the ability to withdraw all of the funds. After some heated coaxing, the developer was ultimately found to be willing to return all of the funds.

This is a global/international case not involving a specific country.[1][2][3][4][5][6]

About Munchables

"It's time to restore reality Oops. We blasted the peaceful world of the Munchables out of existence. The clans are now divided between ethereal realms. Our mission is to reunite them."

"Munchables is a twist on GameFi that adds evolving NFTs into the mix. The game is built on top of Blast leveraging its unique on-chain primitives to create an incentive filled journey for all players."

"Every day your Munchables can unlock rewards, such as:

Schnibbles Your Munchable's favourite snack! Use this to feed and evolve your Munchables.

Munch points Native points that can only be earned through strategic Munching.

Blast points Keep earning your Blast points even after depositing into the lockdrop.

Blast gold Proportional allocation to our Blast developer airdrop based on your Snuggery performance.

Blast airdrop Munchables were a winner in the Blast Big Bang competition, we will be airdropping those additional rewards."

"It's schnibble time Dive deeper into the realms of the Munchables. Learn how to nurture them, level up, and unlock their true potential. But beware of the cute - they are not all as harmless as they seem."

The Reality

This was the second attack on a Blast protocol within a week[7].

It appears that the Munchables team had mistakenly hired an individual with 4 separate identities[8].

What Happened

A rogue developer installed a backdoor in the Munchables project, which they later exploited to withdraw $62.5 million[7].

Key Event Timeline - Munchables Rogue Developer Theft
Date Event Description
March 26th, 2024 3:37:00 PM MDT Compromise Tweet The compromise is noted in a public tweet[9]. The Munchables team is "tracking movements and attempting to stop the the transactions"[9].
March 26th, 2024 10:29:00 PM MDT ZachXBT Tweet ZachXBT notes a suspicion that the developers are most likely all the same person[8].
March 27th, 2024 3:04:00 PM MDT Rekt News Article Rekt News captures details of the exploit and return of funds[7].

Technical Details

GitHub usernames[8]:

  • NelsonMurua913
  • Werewolves0493
  • BrightDragon0719
  • Super1114

Ethereum addresses[8]:

  • 0x4890e32a6A631Ba451b7823dAd39E88614f59C97
  • 0x6BE96b68A46879305c905CcAFFF02B2519E78055
  • 0x9976Fe30DAc6063666eEA87133dFad1d5ec27c5E

Exchange deposit addresses[8]:

  • 0x84e86b461a3063ad255575b30756bdc4d051a04b
  • 0xe362130d4718dc9f86c802ca17fe94041f1cfc77



"Four different devs hired by the Munchables team and linked to the exploiter are likely all the same person"

"The Blast L2 Big Bang award-winning project Munchables was exploited for $62.5M by a rogue dev. Funds retrieved from dev within a few hours in a rollercoaster ride of a day."

Total Amount Lost

The total amount lost has been estimated at $62,500,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

The Munchables team quickly reported the compromise and attempted to stop the transactions[9][7]. There were rumors about the possibility that a North Korean developer, hired by mistake, was behind the attack[7]. ZachXBT took action against the rogue developer, possibly saving the day[7].

"Munchables has been compromised. We are tracking movements and attempting to stop the the transactions. We will update as soon as we know more."

Reactions On Twitter

[6][10]

Munchables exploited. #rekt for 11 ETH. My pets will be never be petted again

Blast devs can surely revert the tx, after all it's a centralized rollup?

Investigation Into Developer

ZachXBT found suspicion with the development team hired by Munchables[8].

Four different devs hired by the Munchables team and linked to the exploiter are likely all the same person as they:

>recommended each other for the job

>regularly transferred payments to the same two exchange deposit addresses

>funded each others wallets

Ultimate Outcome

Funds were eventually retrieved from the developer, who was exposed by ZachXBT[7]. The developer agreed to return the funds, and roughly $60.5 million was transferred back to Munchables[7].

Total Amount Recovered

"We can confirm that the full refund distribution process has now been completed.

Next up is processing the Blast rewards to all OG lockdrop players.

Then, we begin the next chapter.

Get ready to Munch"

The total amount recovered has been estimated at $62,500,000 USD.

Ongoing Developments

What parts of this case are still remaining to be concluded?

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.

References

  1. ↑ @_munchables_ Twitter (Apr 23, 2024)
  2. ↑ Munchables | Start Your Mission (Apr 23, 2024)
  3. ↑ Welcome to Munchables | Munchables (Apr 23, 2024)
  4. ↑ Concept | Munchables (Apr 23, 2024)
  5. ↑ @0xQuit Twitter (Apr 23, 2024)
  6. ↑ 6.0 6.1 TokensWolf - "Munchables exploited. #rekt for 11 ETH. My pets will be never be petted again" - Twitter (Accessed Apr 24, 2024)
  7. ↑ 7.0 7.1 7.2 7.3 7.4 7.5 7.6 7.7 Rekt - Munchables - REKT (Apr 23, 2024)
  8. ↑ 8.0 8.1 8.2 8.3 8.4 8.5 ZachXBT - "Four different devs hired by the Munchables team and linked to the exploiter are likely all the same person" - Twitter (Apr 23, 2024)
  9. ↑ 9.0 9.1 9.2 Munchables - "Munchables has been compromised. We are tracking movements and attempting to stop the the transactions. We will update as soon as we know more." - Twitter (Accessed Apr 23, 2024)
  10. ↑ 0xshabby - "Blast devs can surely revert the tx, after all it's a centralized rollup?" - Twitter (Apr 23, 2024)
Retrieved from "https://quadrigainitiative.com/cryptocurrencyhackscamfraudwiki/index.php?title=Munchables_Rogue_Developer_Theft&oldid=5694"