Milady NFTs plummet by 30% amidst Founders’ feud in courts: the future looks uncertain

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Milady NFTs plummet by 30% amidst Founders’ feud in courts: the future looks uncertain

The value of Milady’s, one of the hottest NFT projects, drops as its founders engage in public legal battles. Krishna Okhandiar, one of the five co-founders, was being pushed back over “extremist and overtly racist” online posts after trying to take over the Remilia DAO.

Milady house is now divided

Milady Maker, hailed as one of the more intriguing and popular NFT undertakings, is facing a seismic shakeup. The mysterious personas at its helm have gone from collaborating on the project to trading accusations of deception in two opposing lawsuits.

The subsequent events mark what many consider the most tumultuous chapter in the history of this project, already well-acquainted with mayhem.

The discord between its leaders, unfolding in both courtrooms and social media platforms, hasn’t gone unnoticed by stakeholders and observers. According to DefiLlama’s data, Milady NFTs have witnessed a staggering 30% depreciation, now pegged at a mere 2 ETH or $3,460, all within two and a half weeks.

Milady NFT appealing to Love
Milady Maker #2480 (Source: OpenSea)

From theft to the blame game

The current crisis follows hot on the heels of last month’s controversy when an insider looted approximately 1 Million from the project’s DAO treasury. Now, not only is the team grappling with that loss, but they’re also fragmenting, with members openly blaming one another.

Central to this fiasco is the financial art project, Bonkler, owned by Remilia, the Decentralized Autonomous Organization (DAO) helming Milady. Founder Charlotte Fang tweeted at the time that the attack was prosecuted to harm not only the financial status of the DAO but also its credibility.

However, not all seems bleak. Bonkler’s main reserves, core contract, and linked NFTs remained uncompromised during this turmoil. At the time, the daily mint of Bonkler was temporarily paused, only to be resumed with a forthcoming v2 upgrade. Fang sought to instill further confidence, stating, “All Remilia NFTs, metadata, and domains are safe. Existing Bonklers retain their sanctity.”

Claims, counterclaims, and a race for control

Just when stakeholders were recovering from the shock of this insider theft, another bombshell dropped. Tensions flared as Sprite Bonkler, the Creative Director and Artist for Remilia Corporation, stated that a lawsuit had been slapped on Charlotte Fang and her Delaware Limited Liability Companies (LLCs).

The allegations suggested an orchestrated covert takeover of Remilia, its operations, resources, and a significant chunk of prized digital assets.

The primary grievance: Fang, they allege, had diverted digital assets north of $600,000 from the company’s coffers. Worse, it appears that she had been establishing Delaware LLCs to reinforce her claim and exert sole control over Remilia’s sprawling digital empire.

When the co-founders first caught wind of Fang’s alleged maneuvers, her LLCs pleaded discretion, promising a formal response. That response never came. Instead, the situation was exacerbated. 

Fang is accused of seizing further control, draining an additional $1.7 million in digital assets, and cutting off the co-founders from the venture’s primary communication and financial channels. Adding fuel to the fire, she reportedly lodged a groundless lawsuit in Nevada, with neither jurisdiction nor accompanying evidence, while simultaneously initiating a misleading campaign against the other founders, accusing them of pocketing Remilia’s assets.

Milady's co-founders complaint against Charlotte Fang
Source: Justia Dockets & Filings

The battle to regain the helm and right the ship

For four of Remilia’s co-founders, this lawsuit is of the utmost importance. They contend that Charlotte’s actions have wreaked havoc on the market, casting doubt over products birthed under their joint venture. In their eyes, the goal now is dual: to return to regular business operations and to counter the volatility sparked by Fang’s purported maneuvers.

Legal documents from Sept. 22 shed further light on the matter. They highlight that the Remilia Collective wasn’t ever a single-entity show run by Fang. It has always been an unincorporated partnership or joint venture.

They further contend that Sprite, the core creator of Remilia, had already been working on the project before collaborating with Fang in September 2021. The papers even go as far as accusing Fang of racial misconduct against fellow team members.

Armed with these allegations, Remilia’s co-founders have mounted their counteroffensive. Their lawsuit against Fang and her LLCs seeks to reassert their legitimate stake in Remilia. Their charges are grave and manifold: breach of fiduciary duty, contract violations, fraud, libel, and theft, among others.

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