Fraud and theft have a long history, with malicious individuals exploiting opportunities in every field. In the crypto world, fraud and hacking incidents are also frequent, with the rapid movement of money across the globe making it an especially tempting target. However, these activities are becoming increasingly difficult to carry out.
Victims of Munchables
Cryptocurrency intelligence and security expert ZachXBT is now a significant figure for the victims of the Munchables hack. Renowned blockchain detective ZachXBT has become one of the signatories of the multisig wallet holding the hacked user funds of the GameFi protocol Munchables.
The Munchables developers recently announced the following:
“At this stage, ZachXBT will join the multisig as the fourth person to complete the secure refund of user funds.”
Multisig wallets are asset storage solutions that require the approval of several different wallets to move assets. Especially wallets defined by crypto protocols have multisig capabilities to prevent easy hacking of the protocol if several authorities are compromised. For example, a multisig wallet with seven members can only move funds if at least four members approve.
Munchables and ZachXBT
The other three signatories of the wallet have been identified as Manifold Trading, Selini Capital, and Munchables itself. Before relaunching the protocol, the GameFi developers will also have a code audit performed by Nethermind to prevent potential new hack incidents and to identify and eliminate any undiscovered vulnerabilities.
In response to the latest announcement, ZachXBT wrote:
“I confirm that I will temporarily join the multisig as a signer for the initial period. I did not want to stay in the multisig for a long time; I am waiting for the announcement of rotating signers by the team.”
Meanwhile, those who helped prevent the attack will be rewarded with “ETH and future MUNCH donations.” On March 26th, Munchables, built on the Ethereum layer2 solution Blast, hired someone known by the alias “Werewolves0943.” Subsequently, a hack incident occurred in the protocol involving $63 million.
After the incident, ZachXBT conducted an investigation and suggested that the team might be involved and that the North Korean anonymous developer could be a fabricated story. Later, the anonymous malicious developer unconditionally returned the private keys of the wallets containing the funds.
