Paraspace NFT protocol co-founder resigns after failing to overthrow CEO

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The Paraspace NFT Protocol saga around the whereabouts of the protocol’s funding took a new turn on May 19, as co-founder Jay Yao stepped down from his position at the company. Last week, the NFT protocol made headlines with a lack of funding and a flurry of mutual accusations by chief executives and CEOs.

Yao’s decision to leave the company comes a week after the Parapace team clashed with CEO Yubo Luang over lack of funding. At the time, Mr. Luan claimed he was innocent and that Mr. Yao and others had forced him to step down as CEO. Luan also alleged that Yao and another Paraspace consultant, Thomas Schmidt, illegally obtained access to the protocol’s multisig accounts and social media platforms.

Yao announced his departure on Twitter a week later, apologizing to the community for causing internal issues to affect users. He added that the whole incident was never “intended to be a public issue and should have been resolved internally”.

The entire Paraspace story revolves around the mismanagement of 2,909 Ether (ETH) estimated to be worth $5.4 million. It all started with the price slippage attack on the NFT protocol on March 18th. The attack was immediately thwarted by cryptocurrency security firm BlockSec. To prevent hostile attackers from accessing the funds, the security firm removed 2,909 ETH from the protocol and returned the assets to ParaSpace.

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The Paraspace team claimed that only 50% of the 2,909 ETH was returned to the protocol’s treasury. The team accused Luan of mismanaging funds because he had exclusive access to the multisig wallet. A team of Simidit and Yao called for the forced removal of Luang from his position as CEO. However, Yao eventually resigned along with the team.

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