Controversy has hit the ParaSpace NFT protocol after its CEO was overthrown by other executives following the alleged theft of 1454.5 Ethereum.
The non-fungible token (NFT) lending and borrowing protocol, ParaSpace NFT, has reported a hole in its Treasury. Over 19 team members have accused the Chief Executive Officer (CEO) Yubo Ruan of stealing users’ funds.
Yubo Ruan and ParaSpace Team Battle It out on Twitter
ParaSpace has accused its CEO through a tweet of stealing over 1454.5 Ethereum (ETH) in users’ funds. The protocol recovered 2,909 ETH from a hack in March 2023. But the team alleges that CEO Ruan is yet to return 50% of the funds.
ParaSpace executives say that users’ funds were stored in a wallet with the 0x909 address. But, they have discovered that the wallet is in the control of Ruan.
Citing on-chain data, the team says that 0x909 owns Ethereum Name Service (ENS) domains ruanyobo.eth and paraspaceinsurance.eth. Lastly, both the ENS domains have links to yubo.eth.
Additionally, there was an outflow of over $1 million worth of funds to different centralized exchanges, Circle redemptions, and unknown wallets. The team claims that there is a hole in ParaSpace’s treasury due to these reasons.
In contrast, Ruan explains that it was decided to use the returned funds to recapitalize the protocol. And the 0x909 wallet is being used for operational purposes like insurance.
He tweeted, “The wallet continues to be used for operations as it was intended for when setting up. The mischaracterization by them is absurd, and I have nothing to hide.”
Consultants Claiming to be Co-Founders?
According to ParaSpace’s tweet, the co-founders, Thomas Schmidt and Jay Yao, are leading the battle against Ruan. They removed Ruan access from the social media handles and multi-sig of the project.
But Ruan claims that he was illegally removed. According to Ruan, Schmidt and Yao are former consultants, not company shareholders. However, ParaSpace clarify that the two have been internally and publically recognized as co-founders of the company.
He says, “As it currently stands, we are in discussion with the structure and roles as business partners; however, they are not yet shareholders nor board members of ParaSpace.”
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