- Parallel Finance users charged $500 to withdraw assets.
- NFTs worth $800,000 are locked.
- Lack of official statements from Parallel Finance executives.
Parallel Finance, a defunct NFT lending platform, is charging users a $500 fee for asset withdrawals due to the shutdown of its user-facing withdrawal interfaces as of August 2025.
This fee impacts over $800,000 in locked NFTs, highlighting risks for custodial platforms and affecting assets like BAYC. Regulatory bodies have not yet intervened.
Parallel Finance, a former NFT lending service, now charges a $500 fee for asset withdrawals. Users are affected as the platform’s withdrawal feature has been shut down, trapping over $800,000 in high-value NFTs on its smart contracts.
Key figures like 0xQuit, founder of oSnipe, are involved by providing technical guidance for Etherscan use. Meanwhile, the development team has remained silent, leaving users to rely on the Etherscan method as no other official channels offer assistance.
The withdrawal fee impacts both technical and non-technical users, limiting access to their NFTs. Market reactions have been unfavorable, with community concerns rising about similar centralized protocols, which remain potential points of failure.
The financial implications are substantial as around $800,000 in digital assets, including BAYC, MAYC, and Doodles, are locked within the protocol. The absence of a withdrawal solution highlights the risks inherent in such platforms.
The retention fee reflects wider industry concerns about centralized solutions. Non-technical users must pay significant fees to access their assets, whereas technical users can bypass this through Etherscan, offering a temporary relief method.
“Non-technical users are hit by massive fees to withdraw, while those comfortable with Etherscan can rescue theirs freely. Centralized NFT protocols are still critical points of failure.” – 0xQuit, Founder, oSnipe
The lack of regulatory oversight and response emphasizes the need for improved transparency and efficiency in NFT protocols. As Parallel Finance users adjust, the community focus sharpens on the necessity of decentralized practices and the exploration of secure platforms.
