Paraspace NFT Protocol Consultant Resigns Amidst Fund Controversy
The ongoing saga surrounding the whereabouts of the Paraspace NFT protocol’s funds has taken another dramatic turn. Jay Yao, a consultant for the project, has resigned from his position within the company, adding another layer of complexity to the already contentious situation. Yao made the announcement via Twitter on May 19, stating that he, along with other team members, had resigned from ParaSpace.
Earlier today, I, along with other team members, resigned from my position at ParaSpace.
I am incredibly thankful and fortunate to have been able to work with so many talented individuals. Without them, ParaSpace wouldn’t have achieved the success we had.
While we are still…
— Jay (@MrFryR) May 19, 2023
Expressing gratitude for the opportunity to work with talented individuals, Yao acknowledged the instrumental role played by his colleagues in the success of the project. While the team is still working on resolving the matter at hand, Yao took a moment to apologize to the community for the impact their internal issues had on users. He emphasized that the dispute was never intended to become public and should have been handled internally. Yao extended his best wishes to Yubo Ruan, the CEO of ParaSpace, and the project’s future endeavors.
Yao’s decision to step down comes a week after a clash between the Paraspace team and CEO Yubo Ruan regarding the missing funds. Ruan vehemently denied any wrongdoing and accused Yao, along with another consultant named Thomas Schmidt, of illegally accessing the protocol’s multisig accounts and social media platforms. The CEO claimed that he was being framed by Yao and others who wished to see him removed from his position.
Yao’s departure from the company, announced on Twitter, was accompanied by an apology to the community for the negative impact caused by internal conflicts. He reiterated that the intention was never for the matter to become public, and he regretted that it had not been resolved internally.
The entire Paraspace saga revolves around the mismanagement of 2,909 Ether (ETH), valued at approximately $5.4 million. The incident originated from a price slippage attack on the NFT protocol on March 18. Promptly intercepting the attack, crypto security firm BlockSec removed the 2,909 ETH from the protocol to prevent unauthorized access to the funds. Subsequently, the assets were returned to ParaSpace.
However, the Paraspace team alleged that only 50% of the ETH was added back to the protocol’s treasury, accusing CEO Yubo Ruan of mismanaging the funds due to his exclusive access to the multisig wallet. Consultants Schmidt and Yao demanded Ruan’s forceful removal from the CEO position. Nevertheless, the final outcome saw Yao and his team resigning from their roles within the company.
The resignation of Jay Yao adds further uncertainty to the Paraspace NFT protocol saga, leaving the community and stakeholders anxious for a resolution. The focus now shifts to how the project will navigate this challenging period and restore trust among users, while also ensuring the responsible management of the protocol’s funds moving forward.
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