$800K in Top NFTs Trapped on Defunct Parallel Finance Platform

  • Over $800,000 in high-value NFTs remain stuck in Parallel Finance contracts after its NFT lending service closed.
  • The platform ended NFT lending support on August 1 after a six-month notice period.
  • Non-technical users face difficulties retrieving their NFTs due to lack of a user interface, and a $500 withdrawal fee is being charged by Parallel Finance.
  • Users can still withdraw assets using blockchain tools, but the process is complex.
  • Significant NFTs locked in contracts include 11 Bored Ape Yacht Club, 39 Mutant Ape Yacht Club, and two Doodles.

Parallel Finance currently holds over $800,000 worth of well-known NFTs in its smart contracts after it closed its NFT lending product on August 1, following a six-month warning to users. The closure means that non-technical users are unable to withdraw their NFTs easily, as the user interface for the product is no longer available.

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The affected assets include 11 Bored Ape Yacht Club (BAYC), 39 Mutant Ape Yacht Club (MAYC), and two Doodles NFTs. According to recent floor price data, these holdings are valued at over $800,000, though the actual figure could be higher depending on the individual traits of each NFT. Screenshots shared online show that Parallel Finance is charging a $500 late fee for users who need manual assistance withdrawing their assets.

Blockchain developer 0xQuit highlighted the situation on X (formerly Twitter). 0xQuit provided a detailed guide on how users can manually withdraw their NFTs by interacting directly with smart contracts through the Etherscan block explorer. The manual process requires users to find their unique proxy contract address and encode specific withdrawal transactions for each NFT collection. In a message to users, 0xQuit stated, “The steps to recover aren’t intuitive, but they’re doable with some effort.” They also offered further help for free via social media replies.

A product closure notice, published on January 31, warned users that NFT lending services on Parallel Finance would be discontinued by August 1. The announcement stated, “You will have six months from today to withdraw your funds. After this period, you won’t be able to withdraw.” However, some holders did not retrieve their assets in time. This follows a broader downturn in the NFT market since its peak in spring 2022, with lower engagement even during recent promotional efforts.

Despite the absence of a user interface, NFT withdrawals remain possible for those with enough technical knowledge. Parallel Finance CEO Yubo Ruan has been contacted for comment; updates will be provided if a response is received.

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