Munchables, an Ethereum Layer-2 NFT gaming platform, experienced a dramatic security breach, leading to the temporary loss of over $62 million in crypto, only to see it returned in an unforeseen twist.

The heist, initially believed to be an external attack, was later revealed to be an inside job, orchestrated by one of the platform's own developers, showcasing a complex web of internal vulnerabilities and deceit.

Utilising a dangerously upgradeable proxy within the platform's smart contract, the developer-turned-hacker assigned themselves a vast ether balance, which they later withdrew, exploiting the contract's upgradable nature for personal gain.

The return of the stolen funds, including $62.5 million in ETH and additional assets, raises questions about the motivations behind the heist, with speculation about the attacker's fear of the crypto community's investigative prowess or a possible change of heart.