ParaSpace, a blockchain protocol that allows users to create and trade NFTs, announced that it had identified the cause of the exploit that occurred earlier on the ParaSpace protocol, and all user funds and assets on ParaSpace are safe and secure. 

"No NFTs were compromised, and the financial losses to the protocol are minimal". the firm said, adding that the team has rescued the 2,909 ETH that the exploiter was attempting to withdraw from the protocol.

"The total losses to the protocol are roughly around a minimal 50 - 150 ETH loss due to slippage from the exploiter swapping between tokens during the exploit. ParaSpace will be reimbursing these funds back into the protocol ensuring that no assets are lost. " the project said in the announcement.

ParaSpace has paused its protocol functionality while the team is patching the vulnerabilities identified, and will resume protocol functionality once they have re-audited their platform with Secure3.

A full post-mortem on the attack and protocol security enhancements information will be released later today.