OX.FUN, a crypto derivatives exchange, publicly refuted allegations of insolvency that had circulated on social media. The exchange, which has ties to Three Arrows Capital co-founder Su Zhu, insisted that withdrawal processes were functioning normally and labeled the claims as "coordinated FUD," or fear, uncertainty, and doubt.
The controversy began with a social media post by a user named "stevie_ravioli," who shared a screenshot of a message from an alleged former employee of OX.FUN.
The message indicated that the exchange was insolvent, with only $180,000 remaining for user withdrawals. OX.FUN responded by attaching this post to their announcement but did not comment on specific allegations such as the layoffs or the stated amount of funds left on the platform.
Contrary to the claims of insolvency, onchain data from Arkham Intelligence suggests that OX.FUN holds nearly $1 million in assets, predominantly in its native token OX. Crypto outlet The Block has sought additional comments from OX.FUN regarding these discrepancies.
The backdrop of these events is a dispute between OX.FUN and JefeDAO, which began on February 21 when JefeDAO reported that a $1 million deposit into OX.FUN was frozen, and the exchange accused the depositor of violating terms of service.
In a recent development, JefeDAO accused OX.FUN of extortion, claiming that the exchange offered to return the funds in exchange for promotional activities on social media.
OX.FUN’s latest statement, posted on Sunday evening, alleges that JefeDAO engaged in an "oracle manipulation attack," accusing them of market manipulation with the JAILSTOOL memecoin to benefit from short positions. JefeDAO has denied these allegations, calling OX.FUN’s behavior fraudulent and rejecting their claims of market manipulation.
OX.FUN was established in January 2024 as a gamified trading platform, with the advisory support of Su Zhu and Kyle Davies, who were involved in the collapse of the crypto hedge fund Three Arrows Capital in 2022 due to inadequate risk management.
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