Over $800,000 worth of “blue chip” NFTs are still being held in contracts of Parallel Finance, despite it pulling support for its NFT lending product after a six-month notice period.
With no front end support for NFT lending, non-technical users are unable to withdraw their tokens manually, and the Parallel team is reportedly charging a $500 fee to return the assets.
Yuga Labs’ 0xQuit highlighted the predicament on X, as well as posting a step-by-step guide on how to manually withdraw assets using the Etherscan block explorer.
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Users were warned that support would be withdrawn in plenty of time; the Parallel Finance website contains a banner linking to an “Important Product Closure Notice.”
Published on January 31, the notice informs users that various services, including NFT lending, will be closed on August 1. “You will have six months from today to withdraw your funds. After this period, you won’t be able to withdraw,” it read.
It appears that some users didn’t heed the warnings, however. This is unsurprising, given the drop-off in the NFT sector since its peak in Spring of 2022.
Even a recent Pudgy Penguins promo push was seemingly forgotten within 24 hours.
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0xQuit identified a number of NFTs from high-value collections still locked up on the platform. These included 11 Bored Ape Yacht Club, 39 Mutant Ape Yacht Club, and two Doodles.
According to current floor price data of the collections listed, the NFTs are worth in excess of $800,000, though tokens with specific traits may be worth more.
Screenshots appear to show a Telegram conversation with Parallel CEO Yubo Ruan in which a user is informed “there will be a $500 late fee for the asset withdrawal.”
Even without a user interface, it’s possible for users to withdraw their tokens by interacting with the contract directly. Manual withdrawal requires tracking down a user-specific proxy contract address as well as other info, and encoding a withdrawal transaction for each NFT collection.
0xQuit recognises that the “steps to recover aren’t intuitive, but they’re doable with some effort.” They add, “If you run into issues, drop a reply below and I’ll be happy to help (for free).”
Protos has reached out to Parallel CEO Yubo Ruan for comment, and this article will be updated if we hear back.
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Source: https://protos.com/defunct-nft-lender-parallel-finance-charges-users-500-to-withdraw-assets/
