Remilia Founder Reports Major Hack Involving ETH and NFTs

As Krishna Okhandiar and Mozaic Finance grapple with the recovery from their respective exploits, NetMind tries to stop rampant rumors and FUD related to its own security breach.

Krishna Okhandiar, the founder of Remilia and the Milady Maker NFT collection, reported a big loss due to unauthorized asset transfers, including Ether and various NFTs. Additionally, Mozaic Finance suffered a $2 million exploit due to a possible private key compromise. Meanwhile, the NetMind AI platform addressed rumors of a hack, clarifying that the issue was limited to an individual miner and not the platform itself, after its token, NMT, saw a dramatic price drop.

Milady Maker NFT Collection Hit by Unauthorized Asset Transfer

Krishna Okhandiar, also known as Charlotte Fang, the founder of Remilia and the Milady Maker NFT collection, reported a security breach involving the unauthorized transfer of Ether (ETH) and various nonfungible tokens (NFTs) to a wallet notorious for liquidating assets. The incident was first brought to light by Dumpster DAO on X, revealing a distressing message from Okhandiar stating, "I got drained," accompanied by a link to the suspicious wallet's address.

This address has been associated with the selling of numerous Milady-linked NFTs, including those staked on NFTx, and has executed a transfer of $1 million worth of Ether to another wallet. While the specifics of how exactly the hack was executed are still unclear, blockchain security firm PeckShield pointed out a transaction from Remilia's treasury wallet to the alleged hacker's wallet, which could suggest a potential vulnerability.

This incident only adds to a history of challenges faced by Fang and the Remilia corporation. In September of 2023, Fang announced that there was a breach in the Milady developer ecosystem, resulting in approximately $1 million in fees being diverted. Additionally, the attacker gained control over crucial X accounts linked to Milady and Remilia, further complicating the security woes for Fang's ventures.

The Milady Maker NFT collection, which was launched in 2021 and consists of 10,000 anime-inspired profile pictures designed by Fang, gained significant attention in May of 2023. This surge in interest was partly due to Tesla CEO Elon Musk's endorsement, who shared a meme featuring Milady NFT imagery, leading to a big increase in the collection's market value.

According to a report by Immunefi, 2023 witnessed a staggering loss of $1.8 billion to crypto hacks and scams, with the notorious North Korean Lazarus Group accounting for about 17% of these incidents. February 2024 alone saw more than $65 million stolen in hacking incidents. It seems like March could be a continuation of this trend as Fang was not the only victim to crypto crime over the past few days.

Mozaic Finance Hit by $2M Exploit

Mozaic Finance, a yield farming protocol, also fell victim to a security breach on Mar. 15. The exploit was announced by blockchain security firm CertiK, which shared that the attack involved the unauthorized use of the "bridgeViaLifi" contract, a function supposedly restricted to developer wallets. This incident, resulting from what appears to be a private key compromise, led to the transfer of big sums in stablecoin, totaling losses exceeding $2 million.

The protocol, known for using artificial intelligence to enhance investment returns, saw the stolen funds moved to MEXC, a centralized crypto exchange. On the brighter side, the Mozaic team has expressed some confidence in their ability to retrieve the stolen assets through a legal process, given the funds' location in a regulated exchange.

This event is part of a very concerning trend in the decentralized finance sector, which has seen quite a few high-profile security breaches. Just days before this, the Unizen protocol reported a loss of more than $2 million due to an external call vulnerability, while Seneca Finance experienced a similar setback with a $6 million loss at the end of February.

NetMind Clarifies Exploit Rumors

Meanwhile, the blockchain-based artificial intelligence platform NetMind addressed some rumors about a hack that allegedly took place on Mar. 15. The platform clarified on X that the issue was confined to an individual miner rather than the platform itself, as word started spreading of a broader exploit after its token, NMT, experienced a large drop in value.

NetMind operates as a cloud computing service, offering GPU owners the opportunity to process data in return for NMT tokens. These tokens are part of the NetMind Chain blockchain network, with a version also existing on the BNB Smart Chain. Concerns arose when NMT's value plummeted from $11.34 to $2.77 in a matter of hours, an almost 76% decrease.

The decline led to speculation among X users about a potential mint exploit that would allow an attacker to generate an unlimited number of tokens, thereby devaluing NMT. However, the NetMind team responded quickly, denying these rumors and attributing the price drop to the actions of an early miner who sold 440,000 NMT tokens. They also assured the community that the platform had not been compromised by any hack or malfunction.

This clarification appears to have reassured investors somewhat, as the token's value saw a decent recovery, climbing 250% from its lowest point to $9.70. Despite this rebound, NMT is still down 14% from its value before the incident.

Further investigations led decentralized finance investor Alan to identify a wallet address linked to the alleged attacker, which was involved in bridging and selling tokens on the BNB Smart Chain. However, there was no immediate evidence to confirm these transactions' exact timing in relation to the price drop.