Parallel Finance Closure Strands $800K in NFTs

The shutdown is significant due to its direct impact on users holding valuable NFTs and the imposed $500 fee for withdrawal. Immediate market reactions include user dissatisfaction and the need for manual NFT retrieval.

Parallel Finance, under the leadership of Yubo Ruan, officially closed its NFT lending product, leaving significant assets stranded. Yubo Ruan communicated via social platforms, guiding users to manually withdraw their NFTs with a $500 fee per asset.

Experts like 0xQuit, the oSnipe founder, stepped in to provide instructions for bypassing the platform’s closed user interface. Affected NFTs include the high-value Bored Ape Yacht Club series, totaling over $800,000 in value.

The closure caused financial strain among NFT holders, who face substantial costs to retrieve their assets. Community and developer sentiments were mainly negative due to the unexpected UI removal and high withdrawal fees.

“Please withdraw using [0xQuit’s] tutorial, as the platform has officially closed on August 1, 2025. Otherwise, all remaining NFTs will be liquidated to provide lender liquidity.” — Yubo Ruan, Founder and CEO, Parallel Finance

Many experts highlighted the unique case of Parallel Finance’s closure, contrasting it with historical platform shutdowns. Unlike some, the platform asked users to manage significant asset retrieval fees manually. Potential regulatory or technological impacts may follow since such closures affect the broader NFT market. Bold actions might be needed to safeguard asset retrieval, minimizing similar risks for users in the future.