NFT Lender, Shut In Jan, Demands $500 For Late NFT Withdrawal

Parallel Finance, a renowned non-fungible token lending protocol, has reportedly shut down after four years of service delivery. Unfortunately, hundreds of thousands of dollars’ worth of high-profile non-fungible token collections have remained stuck inside Parallel Finance contracts after the NFT platform quietly shut down its lending product earlier this month. In this article, we will discuss this news bulletin in depth.

Parallel Finance Quits NFT Space

Earlier this week, speculations emerged that Parallel Finance had shut its doors after four years. On-chain sleuth 0xQuit drew attention to the issue over the weekend, posting on X that collections like Bored Ape Yacht Club, Mutant Ape Yacht Club, and Doodles were still sitting inside Parallel vaults. Based on current floor prices, the stranded non-fungible tokens are valued at over $800,000, though some rare traits could push the number even higher.

The vaults of the now defunct Parallel Finance own 11 BAYC, 39 MAYC, and 2 Doodles. The frontend is deprecated, leaving nontechnical users stuck, and the founder is charging a $500 fee to help.

If your assets are stuck, here’s a step by step to extract them:1/🧵 pic.twitter.com/JFJSDqEfPK

— Quit (@0xQuit) August 21, 2025

Parallel Finance is a crypto liquidity lending platform providing a suite of financial products, including liquid staking, money market services for lending and borrowing, cross-chain, and crowdloan services for parachain auctions. It aims to increase capital efficiency and accessibility in DeFi, allowing users to earn passive income from their staked assets while maintaining crypto liquidity through derivative tokens. It also previously offered crypto liquidity lending using NFTs as collateral.

Earlier this year, Parallel Finance announced that NFT lending, along with other services, would be discontinued on August 1. At the time, it gave users half a year to withdraw their NFTs. But with NFT activity far below its 2022 peak, many overlooked the deadline. Now that the site’s withdrawal timeline is far gone, the platform is demanding some fee from users to recover digital assets manually through blockchain interactions on Etherscan.

User To Pay $500 For Late NFT Withdrawal

In an August 22 screenshot, shared by 0xQuit, Yubo Ruan, the chief executive officer of Paralell Finance, confirmed that late withdrawals will cost users $500 per digital asset, a policy that has sparked frustration among NFT holders. In messages to Protos, Ruan defended the stance, urging people to follow community guides like 0xQuit’s tutorial instead. He also warned that any NFTs not reclaimed would eventually be liquidated to return funds to lenders.

Parallel Finance joins a rapidly growing list of NFT market platforms that have exited the NFT space. Some of the platforms that have recently exited the NFT market include Bybit’s NFT Market platform, Kraken’s NFT Platform, Animoca Brands’ Quidd NFT Marketplace, VK’s NFT Marketplace, X2Y2, and the Solanart and Hyperspace NFT marketplaces. These closures reflect a broader trend of decline and restructuring in the NFT market following the speculative bubble of 2022 and 2023.

Related NFT News:

Best Wallet – Diversify Your Crypto Portfolio

Easy to Use, Feature-Driven Crypto Wallet
Get Early Access to Upcoming Token ICOs
Multi-Chain, Multi-Wallet, Non-Custodial
Now On App Store, Google Play
Stake To Earn Native Token $BEST
250,000+ Monthly Active Users