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<p class="is-style-lead">Accusations of fund mismanagement flew between the Paraspace CEO and consultants, prompting the Paraspace team to publicly demand the CEO’s resignation.</p><p>Meanwhile, the ongoing saga surrounding the whereabouts of the protocol’s funds witnessed a new development as Jay Yao, a consultant associated with the project, resigned on May 19.</p><h2 class="wp-block-heading" id="reaching-a-resolution">Reaching a resolution</h2><p>In a Twitter update, Jay Yao announced that a resolution had been reached with CEO Yubo Ruan, leading to his departure from the project as part of the agreement.</p><figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper"><blockquote class="twitter-tweet"><p>Earlier today, I, along with other team members, resigned from my position at ParaSpace.<br><br>I am incredibly thankful and fortunate to have been able to work with so many talented individuals. Without them, ParaSpace wouldn’t have achieved the success we had. <br><br>While we are still…</p>— Jay (@MrFryR) <a href="https://twitter.com/MrFryR/status/1659392355081031682?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 19, 2023</a></blockquote></div></figure><p>The resolution also includes conditions such as Ruan and other team members, including Yao, issuing a public apology for the controversy surrounding the alleged misappropriation of users’ funds.</p><p>Jay Yao has since publicly apologized for his role in the controversy, taking responsibility for his actions. However, CEO Yubo Ruan has not yet issued an apology.</p><figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper"><blockquote class="twitter-tweet"><p>This is the second vlog for our community <a href="https://t.co/1nX9UVGojk" rel="noopener noreferrer nofollow">pic.twitter.com/1nX9UVGojk</a></p>— Yubo Ruan (@yuboruan) <a href="https://twitter.com/yuboruan/status/1658855818958364674?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 17, 2023</a></blockquote></div></figure><p>Nevertheless, Ruan recently took to Twitter, sharing a video in which he addressed the situation and expressed his commitment to reorganizing the internal team.</p><p>Additionally, he pledged to foster greater transparency within the community, aiming to rebuild trust and mend the fractured relationship between Paraspace and its stakeholders.</p><div class="cn-block-related-link"><span class="cn-block-related-link__prefix"> You might also like: </span><a href="https://crypto.news/bitmex-collaborates-with-industry-players-to-send-physical-bitcoin-lunar/" class="cn-block-related-link__link" rel="noopener noreferrer nofollow"> BitMEX collaborates with industry players to send physical bitcoin lunar </a></div><p>Some of the other terms of the resolution included that Yao and Thomas Schmidt will be acknowledged as co-founders even after their departure, and control of the ParaSpace NFT Twitter account will be handed over to a manager appointed by Ruan. Moreover, Ruan will have sole authority over the multi-sig wallet.</p><h2 class="wp-block-heading" id="a-saga-surrounding-the-mishandling-of-funds">A saga surrounding the mishandling of funds</h2><p>Jay Yao’s departure from the firm, coincided with a week of intense confrontations between the Paraspace team and CEO Yubo Ruan concerning the mysterious disappearance of funds.</p><figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper"><iframe title="Auto-Compounding $APE Staking with ParaSpace" src="https://www.youtube.com/embed/MJnoZJo8FVg?feature=oembed"></iframe></div></figure><p>Amidst the turmoil, Ruan staunchly defended his innocence, asserting that individuals like Yao were orchestrating a plot to force him out of his CEO position.&nbsp;</p><p>Ruan further made allegations against Yao and another Paraspace consultant, Thomas Schmidt, accusing them of illicitly obtaining access to the protocol’s multisig accounts and social media platforms.</p><figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper"><blockquote class="twitter-tweet"><p>Contributors at <a href="https://twitter.com/ParaSpace_NFT?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@ParaSpace_NFT</a> ,<br><br>I write to make you aware of a pressing matter concerning our company. Two former consultants, Thomas Schmidt, and Jay Yao, have illegally obtained control of one of the protocol’s multisig and social media accounts. They did so by contacting key…</p>— Yubo Ruan (@yuboruan) <a href="https://twitter.com/yuboruan/status/1656274447542931459?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 10, 2023</a></blockquote></div></figure><p>The ongoing Paraspace saga centers around the mishandling of a substantial sum of cryptocurrency, specifically 2,909 <a href="https://crypto.news/price/ethereum/" rel="noopener noreferrer nofollow">ETH</a>, which is currently valued at approximately $5.4 million.</p><p>The series of events unfolded when the NFT protocol fell victim to a price slippage attack on March 18, causing significant concerns. Thankfully, the attack was promptly thwarted by the intervention of BlockSec, a reputable crypto security firm.</p><div class="cn-block-related-link"><span class="cn-block-related-link__prefix"> Read more: </span><a href="https://crypto.news/ripple-to-showcase-tokenization-with-new-cbdc-platform-in-hong-kong/" class="cn-block-related-link__link" rel="noopener noreferrer nofollow"> Ripple to showcase tokenization with new CBDC platform in Hong Kong </a></div>

Paraspace NFT Protocol’s CEO stays firm as ‘usurper’ resigns

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