Milady Founder Acknowledges Hack After Loss of Millions in ETH and NFTs

Charlotte Fang, the founder of Milady and Remilia, acknowledged a security breach after millions of dollars worth of Ether and Non-fungible tokens (NFTs) were moved to a wallet engaged in asset liquidation.

The incident highlights the escalating issue of hacks and security vulnerabilities within the crypto sector, especially affecting decentralized finance (DeFi) platforms.

Remilia Treasury Breached in Hack

Dumpster DAO first noted the unusual transaction and posted on X, bringing attention to Fang’s (also known as Krishna Okhandiar) acknowledgment of a breach involving the Remilia treasury. The transactions in question led to a drainer wallet for liquidating assets, which sold them for approximately 850 Ether (ETH), equivalent to almost $3 million.

Remilia treasury appears to have been drained

Assets from multiple official Remilia wallets have been moved to the address below and are being sold off

0x778Be423ef77A20A4493f846BdbcDDfc30252cE9 pic.twitter.com/AgwmVwWIE4

— Dumpster DAO (@Dumpster_DAO) March 16, 2024

Fang disclosed that the breach was due to a hack that impacted all connected wallets, citing “unknown malware” that infiltrated his password manager as the culprit. This malware accessed the seed phrases stored within, which were supposed to secure all wallets, including the multisig wallet designated for Remilia’s treasury funds.

Despite the setback, Fang reassured that the NFT contract and metadata ownership had been transferred to a hardware wallet and were not compromised. Additionally, the operating treasury had been moved off-chain, ensuring its security. He emphasized that the organization had no immediate plans to sell its NFTs, indicating that the hack would not affect its budgeted operations.

In light of the growing concern within the cryptocurrency community, especially among holders of Milady NFTs, Fang warned of the hack’s extent and advised community members to stay vigilant against suspicious communications.

Milady Project Faces Controversy

The crypto community has expressed skepticism towards claims made by the founder of Milady, prompting Web 3 security experts to investigate the exploit and its aftermath. Firms like Peckshield are analyzing the incident, focusing on a suspicious transfer that likely triggered the recent security breach.

This incident marks another controversy linked to Fang and the Milady project. In September, Fang disclosed that a rogue developer misappropriated $1 million from the treasury. This claim was soon followed by a CryptoPotato report revealing that other co-founders accused Fang in a lawsuit. They alleged that Fang misused $1.7 million from the project’s funds and cited Fang’s removal as necessary due to his involvement in disseminating “extremist and overtly racist” online content.

Milady, a collection of 10,000 NFTs created on the Ethereum blockchain, features generative artwork of anime-style women and has garnered attention within the crypto and NFT communities.