In a recent development, the hacker behind the March exploit of Remilia DAO, a decentralized autonomous organization (DAO) managing the Milady Maker NFT collection, has laundered the stolen $4.3 million worth of cryptocurrency through the crypto mixer Tornado Cash.
Blockchain security firm CertiK traced 1,209.5 Ether (ETH), currently valued at around $4.3 million, deposited into Tornado Cash on June 17th. This deposit was linked back to multiple addresses involved in the Remilia hack on March 16th.
Remilia Hack and Subsequent NFT Liquidation
On March 16th, Remilia and Milady founder Krishna Okhandiar (also known as Charlotte Fang) reported a hack. This coincided with a significant transfer of ETH and NFTs to a wallet that promptly liquidated the stolen assets.
News of the hack spread quickly on social media, with an account called Dumpster DAO sharing a screenshot of the founder’s report and the address receiving the stolen assets. Blockchain analysis revealed that this address sold Milady-linked NFTs, including staked NFTx assets, and transferred $1 million in ETH to another address.
Capitalizing on the Incident: The Short-Lived Milady Wif Hat Memecoin
Interestingly, just two days after the hack, a memecoin inspired by Milady NFTs, called Milady Wif Hat (LADYF), launched a successful presale on the Solana network. Taking after the dog-themed memecoin Dog Wif Hat (WIF), LADYF attracted a significant investment of 91,486 Solana (SOL) within two hours of its announcement, translating to roughly $18.7 million at the time.
Also Read: Milady Hack Drains $1 Million in ETH: Popular DeFi Platform Hit by Security Breach
However, due to the presale being oversubscribed, the team behind LADYF opted to return the excess SOL to contributors. Since then, the memecoin’s value has plummeted, reaching a new all-time low of $0.00001703 on June 14th. It’s important to note that the creators have clarified on their website that they have no affiliation with Charlotte Fang or the Milady Maker NFTs, stating the memecoin is simply “paying homage to a NFT collection we all love and recognize.”
The Remilia Case and the Challenges of DeFi Security
The Remilia hack and subsequent laundering highlight the ongoing challenges associated with security in the decentralized finance (DeFi) space. The use of crypto mixers like Tornado Cash makes it difficult to track stolen funds, potentially emboldening cybercriminals. This incident underscores the need for robust security measures within DAOs and NFT platforms to prevent exploits and protect user assets.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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