Co-Founder of ParaSpace NFT Protocol Resigns After Failing to oust CEO

The Paraspace NFT Protocol saga over the whereabouts of the protocol’s funds took another turn on May 19 as co-founder Jay Yao resigned from his position at the company. Last week, NFT protocols made headlines over missing funds and a barrage of allegations against each other by CEOs and CEOs.

Yao’s decision to leave the firm came a week after Paraface Team CEO Yubo Ruan clashed about missing funds. Ruan said at the time that he was innocent and was being framed by people like Yao to step down as CEO. Ruan also alleged that Yao and another Paraspace advisor, Thomas Schmidt, illegally gained access to the protocol’s multisig accounts and social media platforms.

Contributor on @ParaSpace_NFT ,

I write to inform you of an urgent matter concerning our company. Two former advisors, Thomas Schmidt and Jay Yao, have illegally gained control of one of the protocol’s multisig and social media accounts. He did this by contacting the key…

– Yubo Ruan (@yuboruan) May 10, 2023

Yao took to Twitter a week later to announce his departure from the firm and apologized to the community for letting internal matters affect users. He added that the entire saga “was not intended to be a public matter, and should have been resolved internally.”

Earlier today, I resigned from my position at Paraspace along with other team members.

I am incredibly grateful and fortunate to work with such talented individuals. Without them, Paraspace would not have had the success that we have.

While we still…

— Jay (@MrFryR) May 19, 2023

The entire Paraspace saga revolves around the mismanagement of 2,909 Ether (ETH), which is estimated to be worth $5.4 million. It all started with a price slippage attack on the NFT protocol on March 18th. The attack was quickly stopped by crypto security firm BlockSec. To prevent hostile actors from gaining access to the funds, the security firm removed 2,909 ETH from the protocol and then gave the assets back to ParaSpace.

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The Paraspace team claimed that out of 2,909 ETH, only 50% of it was added back to the protocol’s treasury. The team accused Ruan of mismanaging funds because he had exclusive access to the muti-sig wallet. Schmidt and Yao’s team sought to forcibly remove Ruan from his position as CEO. However, in the end, Yao resigned from his position along with his team.

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