- Parallel Finance’s shutdown traps $800K in NFTs.
- Users face a $500 withdrawal fee.
- Outrage surrounds the fee and withdrawal process.
Parallel Finance, an NFT lending platform, has ceased operations as of August 2025, stranding over $800,000 worth of NFTs, including prestigious Bored Ape Yacht Club tokens, within its digital vaults.
The sudden closure highlights the risks in DeFi’s NFT sector, impacting holders and sparking concerns over custodial safety and needed regulatory frameworks globally.
Parallel Finance Shutdown Traps $800K in NFTs
Parallel Finance, a leading NFT lending platform, has fully shut down, leaving $800K in NFTs stuck. The closure involves significant assets from Bored Ape Yach Club and other collections, impacting users and the broader NFT market. More details about the Parallel Finance shutdown can be found here.
The shutdown was orchestrated by CEO Yubo Ruan, who urged users to follow 0xQuit’s recommendations for asset withdrawal. Affected assets include BAYC and MAYC tokens, with a $500 fee for late claims.
The shutdown negatively affects NFT holders, causing asset immobilization and market uncertainty. Stuck NFTs, like BAYC, signify financial loss. Users struggle with the complex withdrawal process and fee, heightening community dissatisfaction.
The NFT finance market observes a significant decline, reflecting in lending volumes and user engagement. Such events underscore the challenges DeFi faces in ensuring liquidity for non-fungible tokens compared to traditional assets.
Reactions from the community reflect frustration over the withdrawal difficulties and fees. Users express discontent on platforms like Twitter and Discord, questioning the transparency and governance of such protocols.
The shutdown may prompt regulatory discussions, possibly influencing future NFT-related legislation. Parallel Finance’s closure exposes the vulnerabilities in DeFi, calling for enhanced protective measures and platform governance.
“Please follow 0xQuit’s tutorial to withdraw assets, as the platform will officially shut down on August 1, 2025. Otherwise, all remaining NFTs will be liquidated to provide liquidity to lenders.” — Yubo Ruan, CEO, Parallel Finance
