Team members of the NFT lending protocol ParaSpace, defendant Project founder Yubo Ruan has withheld millions of dollars worth of corporate funding.
In March, ParaSpace recovered $5 million from hacking the platform, but the team now claims Ruan kept most of the money for himself. Yubo Ruan responded by calling the accusations “unverified information.”
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Top NFT-Fi ParaSpace, a lending platform with a TVL of around $140 million and above, is in a very public civil war over underfunding recovered from a March 18th protocol exploit.
According to several team members, including COO Thomas Schmidt and CBO Jay Yao, more than half of the hacked funds never made it into the ParaSpace multisig wallet. ParaSpace is where most of the money is Instead, it remains in the wallet under the full control of founder Yubo Ruan. Team members further claim that the money is siphoned off over time.
May 10th, Paraspace twitter account “Since the hack, approximately $1 million worth more has leaked to various unknown wallets and redemptions on CEX and Circle.”
ParaSpace went on to add that “from the initial amount, there is no longer enough available funding to cover the Treasury hole in the protocol.”
Team members were keen to assure users that the financial hole created by the lack of funding “will not significantly affect the financial stability of the platform.”
Reply from the (former) Chief
ParaSpace founder Yubo Ruan has refuted the accusations, but was initially unable to directly refute their content. Ruan initially called them “unauthorized tweets.”
“This account [official ParaSpace account] is now under the control of former marketer Jay, who unfortunately shares unconfirmed information,” Luan said.
and follow up tweet Ruan went on to reveal his side of the story.
“Two former consultants, Thomas Schmidt and Jay Yao, have illegally controlled one of the protocol’s multisig and social media accounts. falsely claimed to be the founder/shareholder of @ParaSpace_NFT and made a claim with intent to take over the CEO and force me to step down.This was so problematic that the legal team took action. ”
Team members accuse Yubo of delaying tactics and acting “vaguely”.
As a final assurance to users, the ParaSpace team states that “all user funds and assets are secure and cannot be accessed by Yubo.”
Current status of ParaSpace https://t.co/x7zMPVRxOf
— Paraspace (@ParaSpace_NFT) May 10, 2023
Solidarity with Yubo Luan
The ParaSpace team members who have accused Rubo Yuan are:
Chief Operating Officer, Thomas Schmidt
Chief Business Officer, Jay Yao
Marketing Director Zheng Duong
Lead Protocol Research, David Rodriguez
Walid Habboul, Lead Solidity Developer
Product Manager, Jonathan Chen
Sheel Shah, Head of BD
Community Head, Dylan Weatherford
Head of Partnerships, Justin Tyler
Ethan Crowley, Head of Europe
Pan Hu, Head of APAC
APAC BD/Community, Luke Hsieh
Maggie Fu, APAC Community
APAC BD, Ming Ren
Carey Fang, APAC BD/Community
BD Operations, Randall Ly
BD Analyst Rachel Ibanez
April Adlawan, BD Analyst
Maddy Campomanes, BD Analyst
Despite the long list of accusers, Ruan said: Another tweet read, “protection @parasapce [sic]. Protect your users.confront @Yuboruan against malicious takeovers. ”
Some of the aforementioned team members jumped in shortly after the news broke Twitter Spaces Live Stream We answer questions from our community and advocate our commitment to transparency and protection of user funds.