ParaSpace team clashes with CEO over alleged whereabouts of protocol funds
On May 10, nonfungible tokens (NFT) financialization protocol ParaSpace published several alleged irregularities tying its CEO, founder, and CTO Yubo Ruan to the mismanagement of funds equaling 2,909 Ether (ETH) recovered through a white-hat interception that occurred on March 18. Ruan denied any wrongdoing, writing: "manufacturing claims with the intent to take over and force me to step down as CEO. This is highly problematic and the legal team has taken action."
Dear ParaSpace Community,TL;DR: There have been no malicious acts from the team. All funds are safe from Yubo, the protocol is under the full control of the team, and we have the financial means to ensure the stability of the platform.Today, we are sharing information brought… pic.twitter.com/58M3U1uLwv
On or around March 18, ParaSpace suffered a price-slippage exploit that was quickly resolved. Around the same time, blockchain security firm BlockSec intercepted the hack. It moved 2,909 ETH from the protocol before malicious actors could obtain the funds and subsequently returned the assets to ParaSpace staff.
According to Paraspace, Ruan had "exclusive control and management" of a portion of protocol funds returned by BlockSec. Developers subsequently allege that a portion of the 2,909 ETH believed to be in control by Ruan had "not been fully returned to protocol, with initially over 50% unreturned, leaving a hole in the protocol treasury." The development team also alleges that these assets had "outflown to various unknown wallets as well as out to CEXs and Circle redemptions," totaling $1 million.
ParaSpace, through its official Twitter account, calls for Ruan to "step down from his roles as CEO and CTO."
On the other hand, Ruan alleges that two former
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