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Plot Twist: Munchables Hacker Returns $62.5 Million in Stolen Funds

2 mins
Updated by Ali M.
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In Brief

  • Hacker returns $62.5 million stolen from decentralized finance project Munchables.
  • Funds returned unconditionally, with private keys shared for user fund recovery.
  • Incident highlights vulnerabilities and community resilience in the crypto market.
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The hacker responsible for the largest security breach on the Ethereum Layer 2 network Blast returned the sum of $62.5 million stolen from DeFi project Munchables.

The incident, previously casting a dark cloud over Munchables, took an unexpected twist, reaffirming the resilience of blockchain technology and the strength of the crypto community.

Munchables Recovers Stolen Funds

Munchables became the victim of a sophisticated cyber-attack by a hacker. The exploiter was identified only by the cryptic address 0x6e8836f050a315611208a5cd7e228701563d09c5, resulting in a loss of 17,400 ETH, worth $62.5 million.

Cybersecurity sleuth ZachXBT meticulously documented the attack and linked it to core developers with ties to North Korea.

“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, and funded each others wallets,” ZachXBT said.

Munchables Total Value Locked
Munchables Total Value Locked. Source: DeFiLlama

However, in an unprecedented move, the hacker initiated the return of all pilfered assets to a multisig contract. He also gave back the provision of private keys necessary to recover user funds.

This gesture, shrouded in mystery, has sparked a wave of speculation regarding the motivations behind the hacker’s change of heart.

“The Munchables developer has agreed to share the keys for the full Munchables funds without any condition. All user funds are safe, lockdrops will not be enforced, all blast related rewards will be distributed as well. Updates to follow in the coming days,” the Munchables team announced.

Read more: Top 11 DeFi Protocols To Keep an Eye on in 2024

This incident, while highlighting the present risks in the DeFi sector, also reflects the importance of community vigilance and the potential for redemption. As Munchables recovers from this ordeal, it reminds investors of the fragility of the DeFi protocols.

Top crypto projects in the US | May 2024

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Ali Martinez has been at the forefront of content creation and market analysis in the cryptocurrency industry since its early days. His journey began with reporting on market trends and price movements, and he quickly established himself as an authority in the field. Ali has covered significant developments in the cryptocurrency market, including market booms, regulatory changes, and major technological advancements. His deep understanding of blockchain technology and market trends has...
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