Charlotte Fang, the CEO of Remilia Corporation and the driving force behind the NFT platform Milady, recently disclosed a significant internal breach that has shaken the foundation of her organization. A rogue developer, whose identity has not been disclosed, diverted approximately $1 million in fees that were generated by Remilia, a DAO behind the operations of Milady.
In a public statement, Fang mentioned that the company had “temporarily paused Bonkler’s daily mint” and assured that they would “revive it with the completion of the planned v2 upgrade”. This statement was aimed at reassuring stakeholders that other assets, such as the Bonkler reserves and the main contract, were not compromised during the breach. Fang tweeted:
Good morning. A developer who worked on Bonkler took steps that allowed him to divert ~$1MM USD in Remilia’s generated fees.
— ♡ Charlotte Fang 🐉 Crown Prince (@CharlotteFang77) September 11, 2023
The Bonkler reserves, main contract and NFTs are safe; only Remilia’s revenue from Bonkler was compromised.
We’ve temporarily paused Bonkler’s daily mint… pic.twitter.com/1QOQDiXka3
Beyond the financial misdirection, the developer also took unauthorized control over critical codebases that are essential for the platform’s operation. The individual further escalated the situation by gaining control over Milady’s primary Twitter accounts, causing confusion and concern among stakeholders.
The incident has had a multi-faceted impact on the company. Financially, the diverted funds represent a significant loss. Operationally, the seizure of critical codebases and social media accounts has disrupted the company’s daily activities. The breach has also raised serious questions about the adequacy of Milady’s internal governance structures and cybersecurity protocols. It was revealed that the rogue developer had coordinated with other internal team members in a calculated attempt to seize control of the company’s assets and social media accounts.
In response to the crisis, Fang was unequivocal, stating that the team “easily identified the individuals involved” and would pursue the perpetrators to the “fullest extent of the law.” She emphasized that the actions taken by the rogue developer and his accomplices were a violation affecting not just the company but every individual stakeholder who has placed faith in Milady’s vision.
The company has acted swiftly by terminating the employment of the individuals involved and initiating legal proceedings against them. While some daily operations have been temporarily halted, the company has plans to resume them soon, fortified by system upgrades that were already in the pipeline.
At the time of writing, the floor price of Milady Maker experienced a sharp decline, dropping by 12.1% within the past day. This was accompanied by a surge in the holder selling their NFTs, registering a 333.9% spike. The broader NFT market also showed signs of strain. Data from Dune Analytics indicated a significant reduction in daily trading volume across multiple exchanges, including Open Sea and Blur.
