Milady NFT Project Exploited by $1M From it's Developer
Milady NFT project suffers $1M setback due to developer exploit. Co-founder assures community of asset safety and legal action.
The Milady NFT project, once a rising star in the NFT universe, recently experienced a significant setback when a developer exploited the system, absconding with a staggering $1 million.
Earlier in May, Milady NFTs had captured significant attention, especially after a tweet from tech mogul Elon Musk. The project witnessed a surge in trading volume, and its community expanded rapidly.
According to NFT analyst Tyler D, a developer within the Milady ecosystem allegedly diverted around $1 million in fees from the project. This wasn't just a financial blow; the developer also compromised the Twitter accounts of Milady and Remilio Baby, another popular NFT collection on the Milady platform, as well as the Remilia account.
Charlotte Fang, the pseudonymous co-founder of Remilia Corporation, which backs the Milady collection, took to social media to address the situation. She confirmed the diversion of funds but was quick to reassure the community. Fang emphasized that the main contract, Bonkler reserves, and NFTs were untouched and secure.
Good morning. A developer who worked on Bonkler took steps that allowed him to divert ~$1MM USD in Remilia’s generated fees.
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 — ♡ Charlotte Fang ???? Crown Prince (@CharlotteFang77) September 11, 2023
In a bid to regain control and ensure security, Fang temporarily halted Bonkler's daily minting process. However, she also hinted at a planned upgrade in the near future. While the developer's actions were a breach of trust, Fang's response aimed at restoring faith and ensuring the community that all assets, including NFTs and metadata, remained safe.
The developer's actions didn't stop at the financial exploit. Attempts were made to gain control over the project's social media accounts, with demands for a significant portion of their treasury. Fang and her team acted swiftly, identifying the rogue developer and assuring the community of impending legal action.
To keep the community informed and maintain transparency, new official social media handles were created. Fang's determination to bring the responsible parties to justice was evident in her statements, emphasizing the harm done not just to the team but the entire community that believed in Milady's vision.
The exploit had immediate repercussions. The floor price of Milady Maker dropped by 12.1% within 24 hours of the news breaking. A significant sell-off of the collection was evident, with sales increasing by a whopping 333.9%.