A cyberattack occurred against the Web3 project Munchables, which was operating on the Blast network, in a development that was frightening for the cryptocurrency industry. The March 26 event rocked the cryptocurrency world and raised important concerns about security in the digital era, with an estimated $62.5 million in Ethereum (ETH) lost. According to preliminary findings, hackers allegedly from North Korea carried out the attack on Munchables, a startup that blends Web3 features with cryptocurrency gambling. Through the manipulation of project-related contracts, the attackers were able to siphon out a sizeable sum of money. In response, Munchables posted on X that they were tracking the stolen money and trying to stop illicit activities.
Blockchain analyst ZachXBT made a valuable contribution to the inquiry by locating wallet addresses thought to be associated with the attackers. DeBank data revealed that this wallet interacted with the Munchables protocol, leading to a 17,413 ETH loss. It was also claimed that the Orbiter bridge laundered the stolen money by converting Blast ETH to regular Ethereum before transferring it to other wallets.
This occurrence also revealed suspicions about inside complicity. ZachXBT speculated that the attackers may be North Korean developers operating under the pseudonym “Werewolves0943” for Munchables. Evidence demonstrating links between multiple coders hired by Munchables, who went by different names and recommended one another for jobs, adds credence to this suspicion.
In addition to causing Munchables to suffer large financial losses, the attack spurred discussion on how to handle the situation within the Blast community. While some members rejected it, claiming it goes against the core ideas of a decentralized network, others suggested intervening by rolling back the blockchain to a point prior to the attack. In the midst of this uncertainty, the protocol’s total value locked (TVL) has decreased and outflows on the Blast network have increased.
It is unclear how this assault would affect user security and trust in the Web3 ecosystem in the long run.
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