- The exchange has now spoken out, decrying the first reports of a major flight of capital as co-ordinated FUD.
- The platform went on to say that a member of JefeDAO tried to exploit the system.
In response to reports that the crypto derivatives exchange OX.FUN backed by Three Arrows Capital co-founder Su Zhu is bankrupt and has approximately $1 million USDC frozen, the company has issued a statement. The exchange has now spoken out, decrying the first reports of a major flight of capital as “co-ordinated FUD” and confirming that all withdrawals are proceeding as expected.
A lot of people were talking about the crypto exchange OX.FUN going bankrupt earlier today on the social media site X. There have been rumors that $1 million worth of USDC has been frozen.
Several employees at the cryptocurrency exchange reportedly said that the business went bankrupt due to consumers’ large withdrawals. Also, word got around that the company’s remaining cash was down to a meager $180,000. Coincident with the statement, cryptocurrency exchange Bybit was recently hacked severely, causing them to lose Ethereum from their platform.
Ongoing Allegations
The group was supposedly “triaging” the remaining cash as part of its crisis management efforts. Aside from JefeDAO, no users were affected by the current financial crisis, according to a statement published by OX.FUN. The platform went on to say that a member of JefeDAO tried to exploit the system.
According to a Sunday follow-up tweet by JefeDAO, OX.FUN creator Nicolas Bayle allegedly promised 1 million USDC in return for daily social media promotion of OX.FUN.
In a lengthy statement, cryptocurrency exchange OX.FUN accused JefeDAO of carrying out an oracle manipulation assault. The exchange records show that on February 14, 2025, JefeDAO deposited $1M USDC. JefeDAO reportedly started selling the JAILSTOOL token aggressively shortly after, between 05:46:56 and 05:57:06 UTC.
Additionally, the exchange said that JefeDAO had placed substantial limit orders below the fair price, including an order for $600,000 worth of tokens at $0.048 and further orders at $0.045, even though the token’s fair price was $0.05. This led JefeDAO to sell the asset, which was worth $300,000. With the market price falling below $0.04, JefeDAO was able to liquidate its short positions at a low of $0.034, according to OX.FUN.
Highlighted Crypto News Today:
HK Asia’s Stock Soars Post Further Bitcoin Acquisition Announcement
