Milady Hack Drains $1 Million in ETH: Popular DeFi Platform Hit by Security Breach

Exploit

Popular DeFi platform Milady, co-founded by Krishna Okhandiar (pseudonym: Charlotte Fang), recently fell victim to a security exploit resulting in the loss of nearly $1 million worth of Ethereum (ETH). Fang took to social media to warn users about the breach, claiming all imported wallets were compromised.

The attack targeted Fumo LP tokens and staked NFTs held on the NFTX platform, leading to a loss of approximately 850 ETH. However, Fang assured users that “NFT contract ownerships remain secure on hardware wallets.”

Independent blockchain investigator Dumpster DAO first alerted the community about suspicious activity involving the Remilia treasury wallet, a sub-platform associated with Milady. They traced the movement of assets from official Remilia wallets to the address 0x778Be423ef77A20A4493f846BdbcDDfc30252cE9.

Fang later provided a more detailed explanation, revealing the compromised wallet and the team’s efforts to recover lost assets. She acknowledged challenges due to “gas draining” and the presence of low-value derivative holdings within the compromised wallet.

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According to reports, the attacker has liquidated several Milady-related NFTs, including staked SNFTs on NFTX. The exploiter’s address reportedly still holds a significant amount – nearly $1 million – in ETH and other tokens.

The exact method of the hack remains unclear. However, blockchain security firm PeckShield’s discovery of a prior transfer from Remilia’s treasury to the draining address suggests a potential connection between the incidents. Further investigation is needed to fully understand the exploit and prevent similar attacks in the future.

This incident highlights the importance of robust security measures within DeFi platforms. Users are advised to exercise caution when interacting with DeFi protocols and remain vigilant against potential vulnerabilities.

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