ParaSpace is accusing its CEO of mismanaging funds in the wake of a hack by CoinEdition

ParaSpace is accusing its CEO of mismanaging funds in the wake of a hack

• The ParaSpace hack resulted in the loss of more than 50% of users’ funds.
• The platform has recovered $5.4 million in funds.
• ParaSpace removed the CEO’s access, but he refused to comply.

ParaSpace, a decentralized finance (DeFi) platform for non-fungible tokens (NFTs), recently confirmed that it suffered a hack in which no more than 50% of users’ funds were returned to the protocol.

Based on information provided by internal team members, which can be verified on-chain, ParaSpace stated that 2,909 (ETH) tokens worth over $5.4 million were recovered from the hack on March 18, 2023.

In addition, the ParaSpace team discovered that an externally owned account (EOA) wallet was managing the stolen funds. Moreover, more than $1 million has been moved to Centralized Exchanges (CEXs) and Redeeming Circle (USDC).

In the official statement, ParaSpace alleged that Yubo Ruan, its CEO and Chief Technology Officer (CTO), was responsible for these actions because he had exclusive control over the protocol’s finances. The team said:

We were unable to manage or access the protocol’s finances. When we began establishing ParaSpace as a legal entity, we required access to and exposure to these financial provisions only to receive delays and vague responses from Ruan.

To secure the protocol’s multi-signature, the ParaSpace team pulled the administrator’s Ruan access, including addresses not directly controlled by the group, added two team member addresses, and increased the number of signatories required from two to four.

Intertwinedly, ParaSpace noted that Ruan refused to comply with the team’s requests to remove user funds and step down as CEO and CEO despite speaking to him directly.

The team regretted not identifying the issue earlier, acknowledging that the vulnerability in the locker is something they could plug directly into. Notably, ParaSpace plans to host a live stream to provide updates on recovery efforts.

ParaSpace’s post accusing its CEO of mismanaging funds in Wake of a Hack first appeared in Coin Edition.

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