Munchables Rogue Developer Theft
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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].
| 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
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
- ↑ @_munchables_ Twitter (Apr 23, 2024)
- ↑ Munchables | Start Your Mission (Apr 23, 2024)
- ↑ Welcome to Munchables | Munchables (Apr 23, 2024)
- ↑ Concept | Munchables (Apr 23, 2024)
- ↑ @0xQuit Twitter (Apr 23, 2024)
- ↑ 6.0 6.1 TokensWolf - "Munchables exploited. #rekt for 11 ETH. My pets will be never be petted again" - Twitter (Accessed Apr 24, 2024)
- ↑ 7.0 7.1 7.2 7.3 7.4 7.5 7.6 7.7 Rekt - Munchables - REKT (Apr 23, 2024)
- ↑ 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)
- ↑ 9.0 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)
- ↑ 0xshabby - "Blast devs can surely revert the tx, after all it's a centralized rollup?" - Twitter (Apr 23, 2024)