Gamified Crypto Derivatives Exchange OX.FUN Denies Insolvency Claims

Gamified crypto derivatives exchange OX.FUN, which lists Three Arrows Capital co-founder Su Zhu as its advisor, is firing back against accusations of its insolvency

Crypto exchange OX.FUN, which boasts Three Arrows Capital co-founder Su Zhu as an advisor, has hit back against claims that it is insolvent.

In an X post on Feb. 24, OX.FUN flatly denied the insolvency claims, stating that “all withdrawals are processing normally.” The exchange also accused NFT artist JefeDAO of attempting to exploit the platform, leading to his funds being frozen.

All withdrawals are processing normally. This is coordinated FUD. No users were affected by the actions of JefeDAO aside from JefeDAO. He attempted to exploit the platform, got all of his funds frozen, and now is attempting a social media campaign. Nico will put out a… https://t.co/jJRyFSFkiL

The dispute began when JefeDAO alleged that one of its members had deposited $1 million in USD Coin (USDC) on OX.FUN but was later unable to withdraw the funds. Shortly after, OX.FUN founder Nicolas Bayle took to X to accuse JefeDAO of carrying out an “oracle manipulation attack” by placing large limit orders below fair market prices and closing short positions at lower levels.

However, JefeDAO has refuted the claims. The artist also alleged that Bayle offered to return the funds in exchange for daily social media promotion of the platform.

“I literally know this is 100% fraud just based on the fact that it is highly unusual and suspicious for an exchange to request the promotion of their social media accounts as a condition to return someone’s funds.”

JefeDAO

In an X thread, Coinbase head of product Conor Grogan suggested that a scan of OX.FUN’s wallets shows that they mostly contain the exchange’s own OX token. He added that if the platform processes a pending $1 million USDC withdrawal, its USDC balance will drop to around $1,000.