Paraspace NFT Protocol’s $5.4M Controversy Takes an Exit Turn

• Ruan insisted that he was innocent and that people like Yao were trying to frame him.
• On March 18, an attack involving price slippage on the NFT protocol was the first spark.

On May 19th, Jay Yao, a consultant working on the Paraspace NFT protocol, resigned from his job in the firm amid the ongoing controversy about the locations of the protocol’s funding. The missing funds and a storm of CEO and consultant charges against one another made headlines last week over the NFT process.

A representative from Paraspace issued the following statement:

“Yubo has never done any embezzlement. The whole issue is a setup. Jay & Thomas are neither shareholders nor co-founders of ParaSpace. Their action have no relation with ParaSpace.”

Mishandling of $5.4 Million

Yao’s departure from the company happened a week after he and the rest of the Paraspace team had an argument with CEO Yubo Ruan about the missing money. At the time, Ruan insisted that he was innocent and that people like Yao were trying to frame him so that he would have to resign as CEO.

Moreover, according to Ruan, Yao and another Paraspace consultant named Thomas Schmidt gained unauthorized access to the protocol’s multisig accounts and social networking sites.

A week later, Yao used Twitter to announce his resignation from the company and apologize to the user base for allowing company politics to disrupt service. He continued by saying that nothing in this situation was ever meant to be public and should have been sorted out internally.

Mishandling 2,909 Ether (ETH), at the time valued at an estimated $5.4 million, lies at the heart of the Paraspace chaos. On March 18, an attack involving price slippage on the NFT protocol was the first spark.

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