ParaSpace, a nonfungible tokens (NFT) financialization protocol, has been engulfed in a dispute as the development team accuses CEO and CTO Yubo Ruan of mishandling protocol funds. The team demands Ruan’s resignation, while Ruan retaliates by claiming an “illegal takeover” by the development team.
On May 10, ParaSpace released a statement alleging irregularities involving Ruan and the mismanagement of approximately 2,909 Ether. These funds were recovered through a white-hat interception on March 18. Ruan vehemently denies any wrongdoing and accuses the development team of orchestrating a scheme to force him out of his position.
According to ParaSpace, Ruan had exclusive control over a portion of the recovered funds. However, the development team claims that a significant portion of the funds remains unreturned, leaving a deficit in the protocol treasury. They further allege that these assets were transferred to various unknown wallets, as well as to centralized exchanges and Circle redemptions, amounting to approximately $1 million.
In response, ParaSpace called for Ruan to step down from his roles as CEO and CTO. However, Ruan counters that two former ParaSpace consultants, Thomas Schmidt and Jay Yao, who currently hold positions as COO and CBO, respectively, have unlawfully gained control of one of the protocol’s multisig and social media accounts. Ruan asserts that a structured redeposit procedure was agreed upon between him, Schmidt, Yao, and other key stakeholders, and that all of the hacker’s debt has been repaid according to the schedule.
ParaSpace emphasizes the need for swift and effective resolution, while Ruan warns of potential legal consequences associated with what he perceives as an illegal takeover.
The situation surrounding ParaSpace remains contentious, with the fate of the protocol and the involvement of its CEO hanging in the balance.