Paraspace NFT Protocol’s CEO stays firm as ‘usurper’ resigns

Accusations of fund mismanagement flew between the Paraspace CEO and consultants, prompting the Paraspace team to publicly demand the CEO’s resignation.

Meanwhile, the ongoing saga surrounding the whereabouts of the protocol’s funds witnessed a new development as Jay Yao, a consultant associated with the project, resigned on May 19.

Reaching a resolution

In a Twitter update, Jay Yao announced that a resolution had been reached with CEO Yubo Ruan, leading to his departure from the project as part of the agreement.

The resolution also includes conditions such as Ruan and other team members, including Yao, issuing a public apology for the controversy surrounding the alleged misappropriation of users’ funds.

Jay Yao has since publicly apologized for his role in the controversy, taking responsibility for his actions. However, CEO Yubo Ruan has not yet issued an apology.

Nevertheless, Ruan recently took to Twitter, sharing a video in which he addressed the situation and expressed his commitment to reorganizing the internal team.

Additionally, he pledged to foster greater transparency within the community, aiming to rebuild trust and mend the fractured relationship between Paraspace and its stakeholders.

Some of the other terms of the resolution included that Yao and Thomas Schmidt will be acknowledged as co-founders even after their departure, and control of the ParaSpace NFT Twitter account will be handed over to a manager appointed by Ruan. Moreover, Ruan will have sole authority over the multi-sig wallet.

A saga surrounding the mishandling of funds

Jay Yao’s departure from the firm, coincided with a week of intense confrontations between the Paraspace team and CEO Yubo Ruan concerning the mysterious disappearance of funds.

Amidst the turmoil, Ruan staunchly defended his innocence, asserting that individuals like Yao were orchestrating a plot to force him out of his CEO position. 

Ruan further made allegations against Yao and another Paraspace consultant, Thomas Schmidt, accusing them of illicitly obtaining access to the protocol’s multisig accounts and social media platforms.

The ongoing Paraspace saga centers around the mishandling of a substantial sum of cryptocurrency, specifically 2,909 ETH, which is currently valued at approximately $5.4 million.

The series of events unfolded when the NFT protocol fell victim to a price slippage attack on March 18, causing significant concerns. Thankfully, the attack was promptly thwarted by the intervention of BlockSec, a reputable crypto security firm.