- ParaSpace CEO Yubo Ruan has accused the platform’s development team of an illegal takeover
- The two teams locked horns after the dev team alleged that Ruan misappropriated protocol funds
- The CEO maintained that the platform’s funds are intact and the dev team intends to use the false claims to force him out of office
NFT platform ParaSpace CEO Yubo Ruan has accused the platform’s development team of plotting an illegal takeover. The two teams locked horns after the dev team alleged that Ruan misappropriated the platform’s funds amounting to over $5 million. However, the CEO has maintained that the protocol’s funds are intact and the development team is falsifying information to force him out of office.
CEO Removed from Multi-Sig Wallet
The fight for control worsened on May 10 when the official ParaSpace Twitter account disclosed information claiming that Ruan, who’s also the CTO, mishandled funds salvaged from an attempted hack in March.
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
— ParaSpace (@ParaSpace_NFT) May 10, 2023
According to the post, Ruan had full control of a section of the funds and which he is yet to return to the protocol thus destabilizing ParaSpace’s treasury. The dev team further claims that the funds under the CEO’s watch were seen leaving to other wallets including centralized exchanges.
Ruan’s actions forced the dev team to restructure the protocol’s multi-signature wallet and “removed Yubo as well as any addresses not directly controlled by the team.”
However, the CEO has claimed that ParaSpace’s COO and CBO Thomas Schmidt and Jay Yao respectively have taken over the platform’s social media accounts and one wallet through dubious means. Ruan added that all the salvaged funds have “been paid back in full” as agreed, terming the misappropriation allegations as “absurd.
Contributors at @ParaSpace_NFT ,
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…
— Yubo Ruan (@yuboruan) May 10, 2023
It Happens, But not Common
Although the scenario at ParaSpace isn’t common in the crypto space, it’s been witnessed in the past. In December 2021, for example, Sushi CTO Joseph Delong stepped down after weeks of rumored infighting.
In the interest of the Sushi Community I am resigning as CTO effective immediately. I very much enjoyed the things that we built together and will look back positively on this moment. pic.twitter.com/7pZsQuPgup
— joseph.eth (@josephdelong) December 8, 2021
With the dev team controlling a critical part of the protocol, it’s yet to be seen whether Ruan will resign and how the community will react to the developments.
