Founder of Milady Admits Hack Following Loss of Millions in ETH and NFTs

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

The incident sheds light on the increasing problem of hacks and security vulnerabilities in the crypto industry, particularly impacting decentralized finance (DeFi) platforms.

Remilia Treasury Breached in Hack

Dumpster DAO initially noticed the suspicious transaction and posted about it, drawing 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, resulting in the sale of assets worth approximately 850 Ether (ETH), equivalent to nearly $3 million.

Fang revealed that the breach occurred due to a hack affecting all connected wallets, attributing it to “unknown malware” that infiltrated his password manager. This malware accessed the stored seed phrases that were meant to secure all wallets, including the multisig wallet designated for Remilia’s treasury funds.

Despite this setback, Fang assured that the NFT contract and metadata ownership had been moved to a hardware wallet and remained uncompromised. Furthermore, the operating treasury had been transferred off-chain for enhanced security. There are no immediate plans to sell the NFTs of the organization, indicating that the hack would not impact its planned operations.

In response to the growing concerns within the cryptocurrency community, particularly among Milady NFT holders, Fang issued a warning about the extent of the hack and advised community members to remain vigilant against suspicious communications.

Milady Project Faces Controversy

The crypto community has shown skepticism towards the claims made by the Milady founder, leading Web 3 security experts to investigate the exploit and its consequences. Companies like Peckshield are currently examining the incident, focusing on a suspicious transfer that likely triggered the recent security breach.

This incident marks another controversy surrounding Fang and the Milady project. In September, Fang disclosed that a rogue developer had misappropriated $1 million from the treasury. Subsequently, a CryptoPotato report revealed that other co-founders had accused Fang in a lawsuit. They claimed that Fang had misused $1.7 million from the project’s funds and highlighted the necessity of Fang’s removal due to his involvement in spreading “extremist and overtly racist” content online.

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

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