The hacker behind the $4.3 million exploit of Remilia DAO has funneled the stolen funds through Tornado Cash, a notorious cryptocurrency mixer, according to recent blockchain analysis.
Details of the Stolen Funds Transfer
On June 17, blockchain analysis firm CertiK reported that the hacker responsible for the Remilia exploit deposited 1,209.5 Ether (ETH), valued at approximately $4.3 million, into Tornado Cash. This move comes about three months after the initial theft on March 16, where significant amounts of Ethereum and non-fungible tokens (NFTs) were illicitly transferred from Remilia DAO.
| Date | Event Description | Value Involved |
|---|---|---|
| March 16 | Remilia DAO hacked, significant ETH and NFTs stolen | $4.3 million |
| March 18 | Meme token Milady Wif Hat presale on Solana network | $18.7 million |
| June 14 | Milady Wif Hat token reaches all-time low | $0.00001703 per token |
| June 17 | 1,209.5 ETH moved to Tornado Cash | $4.3 million |
Remilia DAO, known for its Milady Maker NFT collection, became a victim of a significant hack in March 2023. The DAO’s founder, Krishna Okhandiar, also known by the pseudonym Charlotte Fang, reported the breach. Following the hack, large amounts of Ethereum and NFTs were moved to a wallet that subsequently liquidated these assets.
Sale of Milady-Linked NFTs by the Hacker
Blockchain data revealed that the hacker sold NFTs connected to the Milady Maker collection, including staked NFTx assets. The funds from these sales, amounting to approximately $1 million in Ethereum, were transferred to another address, further complicating the traceability of the stolen assets.
An X account, Dumpster DAO, highlighted the incident by sharing a screenshot of the Remilia founder’s report and identifying the address that received the assets from wallets associated with Remilia DAO.
In an interesting twist, just two days after the hack, a new meme token inspired by the Milady NFTs was launched on the Solana network. The token, named Milady Wif Hat (LADYF), drew significant attention and raised 91,486 Solana (SOL), equivalent to $18.7 million at the time, during its presale on March 18.
Due to overwhelming demand, the team behind Milady Wif Hat announced that they would return any additional SOL received during the presale to the senders. Despite the initial hype, the token’s value has since plummeted, hitting a new all-time low of $0.00001703 on June 14.
| Metric | Value |
|---|---|
| Total SOL Raised | 91,486 SOL |
| Equivalent USD Value | $18.7 million |
| Current Price | $0.00001703 per token (as of June 14, 2024) |
| Presale Oversubscription | Excess SOL returned to senders |
The creators of the Milady Wif Hat token have emphasized that they have no official ties to Charlotte Fang or the Milady Maker NFT collection. On their website, they stated, “This token is simply paying homage to an NFT collection we all love and recognize,” distancing themselves from the controversy surrounding the original NFTs.
Blockchain Analysis and Tornado Cash
Tornado Cash is often used by those looking to obfuscate the origins of their cryptocurrency transactions. By breaking the link between the sender and receiver addresses, Tornado Cash makes it significantly harder to trace the movement of funds on the blockchain. This anonymity service has frequently been used in cases involving stolen or illicitly obtained crypto assets, as seen in the Remilia hack.
The transfer of stolen funds through Tornado Cash has drawn significant attention from the crypto community. The use of such mixing services highlights the ongoing challenges in combating crypto-related fraud and ensuring the traceability of digital assets.
Additionally, the swift launch and subsequent decline of the Milady Wif Hat token underscore the volatile nature of the crypto market and the complex dynamics between new projects and existing controversies.
The Remilia hack and the subsequent movement of funds through Tornado Cash reflect broader issues in the cryptocurrency ecosystem, particularly concerning security and the traceability of assets. As the industry continues to evolve, the need for robust security measures and regulatory frameworks becomes increasingly evident. The responses to the Remilia hack and the launch of related projects will likely shape ongoing discussions about the future of digital asset management and security.
Featured image credit: Freepik