On May 10, non-fungible token (NFT) financialization protocol ParaSpace published several alleged violations linking its CEO, founder and CTO Yubo Ruan to mismanagement of funds, amounting to 2,909 Ether, Recovered through a white hat intercept that occ urred on March 18. Nguyen has denied any wrongdoing, writing: "Manufacturing claims to be intent on taking over and forcing me to step down as CEO. This is a big problem and the legal team has taken action."
Around March 18, ParaSpace suffered a price slippage attack, which was quickly resolved. Around the same time, blockchain security firm BlockSec blocked the hack. It transferred 2,909 ETH from the protocol before the malicious actors obtained the funds, and subse Quently returned the assets to ParaSpace employees.
According to Paraspace, Ruan has “exclusive control and management” of a portion of the protocol funds returned by BlockSec. The developers then claimed that a portion of the 2,909 ETH believed to be controlled by Ruan “was not fully returned to the protocol, initially more than 50% was not returned, leaving a hole in the protocol treasury.” The development team also claimed that these assets had been “Outflows to various unknown wallets and CEX and Circle redemptions”, totaling $1M. They continued: “As a As a result, the team came together, secured multi-signature of the protocol, and removed Yubo and any addresses that the team did not directly control.” ParaSpace, via its official Twitter account, called on Nguyen to “resign as CEO and CTO.”
Ruan, on the other hand, claims that two former ParaSpace advisors, Thomas Schmidt and Jay Yao, the protocol's chief operating officer and chief commercial officer, respectively, “illegally gained control of a multisig and social media account for the protocol” via mis representation. After receiving BlockSec's bailout funds, “me, Thomas, Jay and other key engineering stakeholders” agreed and arranged the structured re-deposit process in stages, Ruan said. The CEO wrote: “So far, according to the schedule, all debts of the The hacker has been deposited into the hacker's account. The remaining amount has been repaid in full on schedule. Their error description is ridiculous, and I have nothing to hide."
ParaSpace said, “Our top priority is to resolve this situation quickly and efficiently.” Meanwhile, Nguyen wrote, “Please be aware of the legal consequences behind these illegal acquisitions.”
