The hacker behind the $62.5 million security breach on the Ethereum Layer 2 network Blast has returned the stolen funds to Munchables.

The hacker was identified as a Munchables team member and exploited a code loophole, inserting sleeper wallets that led to the breach.

Juice Finance narrowly escaped a $25 million loss due to a fortunate typo in their system.

The return of the funds and private keys was possible due to existing security measures, which some see as problematic but are necessary for asset protection.

Munchables has confirmed the security of all user funds and will not enforce lockdrops following the incident.

BlockSec has verified the fund's return, underscoring the need for stringent security in the crypto sector.

The incident reflects the larger issue of North Korean hacking groups stealing approximately $3 billion in tokens since 2017.