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  • Writer's pictureKyle

Several Members Of The ParaSpace Team Resigned This Week. Here's What You Need To Know:

After a public dispute that included accusations of mishandled funds and an alleged company takeover, several notable members of the Paraspace team resigned from the company earlier this week.

On Thursday, Paraspace’s JennDefer, Jay Aka MrFryR, Thomas, EthanDG, Hotlneblng, and Shield all publicly announced that they would be leaving the lending and Bored Ape staking protocol.

“The team has sent a private resignation to Yubo (Paraspace’s Co-Founder) and we just want to focus on a speedy resolution,” Jay told the Gazette. “There’s a non-financial settlement agreement in the works (my post) but Yubo has suddenly stopped communicating with the team. Not sure how ParaSpace can reach a good resolution if this doesn’t get pushed through, still waiting for him to respond. Without resolving this, we really don’t know what the future of the protocol looks like. Me and Thomas are also stepping down from our roles, and we are happy to continue to help the protocol on a volunteer basis.”

As the Bored Ape Gazette previously reported, Jay and other former Paraspace team members claimed that ParaSpace's Founder, Yubo Ruan, misused user funds after the protocol had its assets saved by white hat hackers in March 2023.

However, Ruan has publicly disputed Jay and the other team members accusations of misconduct and has claimed that they tried to take over the business he built.

“In the past 24 hours, they alleged ‘irregularities’ to solicit ‘take over’ through various forced actions, of which they accuse is the return of debts created by the white hacker (note: they are different from user funds) to one of @ParaSpace_NFT operating wallets for different purposes like insurance (0x909)," Ruan tweeted on May 10th. “The use of the returned funds was to recapitalize the protocol. Separately, the wallet continues to be used for operations as it was intended for when setting up. Upon receiving the capital from @BlockSecTeam , we planned a structured redeposit procedure in scheduled phases. This was for two purposes: ETH/USDC fluctuation and optimization of capital operations. The plan was decided upon together by myself, Thomas, Jay, and other key engineering stakeholders. To date, following the schedule, all of the hacker’s debt has been deposited back into the hacker account. The residual amount has already been paid back in full according to schedule. The mischaracterization by them is absurd, and I have nothing to hide.”

Following the resignation of several members of the Paraspace team, the Bored Ape Gazette reached out to Ruan for comment on the state of the protocol.

“We still have over 35+ full time team members and we are going to rebuild our marketing and bd (business development) team,” he said. “In the meantime, we are going to come up with a plan to incentivize new supply, we will talk to big holders one by one to help them come back to the platform etc. Would love to learn if there is anything I can be helpful with.”

Additionally, Ruan released a video blog on May 17th where he told viewers that the protocol is safe and secure.

The Bored Ape Gazette will continue to monitor the Paraspace situation and will keep you up to date on the platform. Stay tuned for updates.

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