The ParaSpace hack resulted in the loss of more than 50% of user funds. However, the platform managed to recover $5.4 million from the funds. On the other hand, the cryptocurrency project team has removed the ParaSpace CEO’s admin access. But the CEO refused to comply.
Cryptocurrency platform accuses its CEO
ParaSpace is a decentralized finance (DeFi) platform for Non Fungible Tokens (NFT). cryptocoin.com As you follow, the platform has recently been hacked. In this hack, ParaSpace lost more than 50% of user funds. However, ParaSpace stated that 2,909 Ethereum (ETH) tokens worth over $5.4 million were recovered from the attack that took place on March 18, 2023, based on information provided by internal team members that can be verified on-chain.
The ParaSpace team also discovered that the Externally Owned Account (EOA) wallet was managing the stolen funds. Moreover, it found that over $1 million was flowing into centralized exchanges (CEXs) and Circle (USDC) redemptions. In its official statement, ParaSpace held CEO and Chief Technology Officer (CTO) Yubo Ruan responsible for these actions. Because it claimed to have exclusive control over the protocol’s finances. Accordingly, the team stated:
We did not manage or have access to the financing of the protocol. When we started to set up ParaSpace as a legal entity, we requested access and visibility to these financial items. However, we received delays and vague responses from Ruan.
ParaSpace CEO denied the accusations!
On the other hand, CEO Yubo Ruan denied these accusations. Regarding the issue, he made the following statement on his Twitter account:
The allegations are made with the aim of taking over the business and forcing me to resign as CEO. This is quite problematic. So the legal team took action.
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
ParaSpace removes CEO’s admin access
Meanwhile, the ParaSpace team withdrew Ruan’s admin access, including addresses not directly controlled by the group, while securing the protocol’s multi-signature. Additionally, two team members added the address and increased the required signatories from two to four.
Interestingly, ParaSpace said that Ruan refused to comply with the team’s requests to remove user funds. He also stated that he resigned from his CEO and CTO posts despite speaking to him directly. The team acknowledges that a void in the treasury is something they can directly fill. However, he regrets that they did not identify the problem earlier. It is worth noting that ParaSpace plans to hold a live broadcast to provide updates on recovery efforts.
