The founder of the Milady Maker NFT project disclosed that a developer had embezzled funds from the treasury and seized control of its codebase.

Charlotte Fang, the founder of the popular Milady Maker NFT project, notified her X followers that a rogue developer had diverted $1 million worth of funds from the project’s treasury.

In an X post on Sept. 12, Fang said a developer who worked on the reserve-backed NFT project “Bonkler” had siphoned the funds from fees generated by the Remilia Collective, the decentralized autonomous organization (DAO) behind Milday.

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

According to Fang, only Remilia’s revenue from Bonkler was compromised in the incident, and the DAO has since paused Bonkler’s daily mint function.

The developer also seized the project’s codebase and coordinated with two other members of the team in an attempt to seize control of the project’s social media platforms, demanding a significant portion of its treasury including NFT reserves.

“They were only successful in seizing @/miladymaker and @/remilionaire here on twitter, and @/remiliacorp has been locked out,” said Fang. 

She also noted that Remilia’s reserves were unaffected by the event and user assets were “perfectly safe.”

Fang claims that due to certain miscalculations that were made by the individuals involved, they were “easily identified” and a lawsuit has been filed against them. 

The complaint attached in Fang’s post names New York-based John Duff, New Zealand-based and Montana-based Henry Smith and Maxwell Roux as the perpetrators.