On May 19, the dispute between the Paraspace NFT protocol members regarding funds mismanagement took a reversal.
The reversal occurred when its co-founder, Jay Yao, quit office.
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Paraspace Protocol Lost Funds After An Attack
Last week, the Paraspace NFT protocol made headlines due to missing funds from the company.
There was a bombardment of accusations between the CEO and executives.
Notably, there was a mismanagement of Paraspace funds of 2,909 ETH (Ether) worth $5.4 million.
The saga started with a price slippage attack on Paraspace’s NFT protocol last March 18.
But the attack was cut off by BlockSec crypto security firm.
To stop hostile actors from gaining access to the fund, the security company removed 2,909 ETH from the NFT protocol and returned it to ParaSpace.
According to the protocol’s team members, only 50% of the 2,909 ETH was returned to the Paraspace treasury.
As a result, the protocol’s team accused CEO Ruan of mismanaging the money since he has exclusive access to the multi-sig wallet.
The protocol’s team, including Yao and Schmidt, demanded that the CEO forcefully step down from his position.
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Yao’s Resignation Shocked the community
One week after Yubo Ruan Paraspace, CEO, and the company’s executives clashed because of the missing funds, Yao decided to leave.
At that time, the CEO Ruan maintained that he was innocent of the accusations.
He said that people like Yao framed him to force him to step down as the CEO.
Furthermore, Ruan alleged that Thomas Schmidt, a Paraspace consultant, and Yao illegally gained access to the firm’s multisig accounts and social media platforms.
Yao Apologized to the Customers
Today May 19, Yao posted on Twitter to announce his departure from the protocol.
In addition, he rendered an apology to the community for allowing internal problems to impact the users.
He further said that the entire episode wasn’t supposed to become a public issue.
In fact, “it is something that the company should have sorted out internally,” he says.
