NFT game Munchables, which is on recently launched Ethereum Layer 2 Blast, lost $62 million last night in an exploit. But early this morning the team had good news for its community: "All funds are safe."

Very early this morning, the Munchables team said on Twitter that a developer attached to the project had "agreed to share the keys for the full Munchables funds without any condition." The wording in the team's message and another by Blur and Blast founder, Tieshun Roquerre, seems to confirm that the exploit was carried out by an insider who worked on the game.

Within an hour of the tepidly good news, the Munchables account said the developer had "shared all private keys involved to assist in recovering the user funds. Specifically, the key which holds $62,535,441.24 USD, the key which holds 73 WETH, and the owner key which contains the rest of the funds."

Not long after, it appeared the Munchables team sent a few test transactions and then moved the $62 million from the exploiter wallet into a multi-signature wallet.

Roquerre, who goes by Pacman on Twitter, warned that Munchables and "protocols integrating with it like @juice_finance were affected." Juice Finance is a points farming protocol to help users maximize their yield and eligibility for airdrops across the Blast ecosystem.

But that's not all. There's now fake Munchables accounts in the replies, asking users to check their eligibility to reclaim funds by clicking a link.

Blast is a Layer-2 scaling solution, like Arbitrum, Optimism, or Coinbase-incubated Base. It has experienced rapid growth after launching its mainnet in February. And as of Wednesday morning, it was the fourth-largest L2 with $2.7 billion worth of total value locked and nearly tied with Base.