OX.FUN Refutes Bankruptcy Claims as “Coordinated FUD”
Cryptocurrency derivatives exchange OX.FUN has publicly denied circulating bankruptcy rumors on social media. The platform, which is linked to Three Arrows Capital co-founder Su Zhu, assured users that withdrawals are operating normally and dismissed the allegations as “coordinated FUD” (fear, uncertainty, and doubt).
Controversy Sparks from Social Media Post
The controversy began when a user named “stevie_ravioli” shared a screenshot allegedly from a former OX.FUN employee. The message claimed that the exchange had gone bankrupt and had only $180,000 left for user withdrawals. In response, OX.FUN addressed the post in its announcements but refrained from commenting on specific claims regarding layoffs or remaining platform funds.
Blockchain Data Contradicts Insolvency Claims
Contrary to the insolvency allegations, blockchain data from Arkham Intelligence indicates that OX.FUN holds approximately $1 million in assets, primarily in its native OX token. Crypto news platform The Block reached out to OX.FUN for further clarification on these discrepancies.
JefeDAO Dispute and Allegations of Market Manipulation
The bankruptcy rumors surfaced alongside an ongoing dispute with JefeDAO. On February 21, JefeDAO reported that a $1 million deposit in OX.FUN had been frozen. In turn, the exchange accused the investor of violating its terms of service.
Recent developments in the dispute saw JefeDAO accusing OX.FUN of extortion, claiming the exchange offered to return the funds in exchange for social media promotional activities.
On Sunday evening, OX.FUN retaliated by accusing JefeDAO of executing an “oracle manipulation attack” and engaging in market manipulation using the JAILSTOOL memecoin to profit from short positions. JefeDAO dismissed these accusations, countering that OX.FUN’s actions amounted to fraud while denying any involvement in market manipulation.
Background and Industry Connections
Founded in January 2024 as a gamified trading platform, OX.FUN received advisory support from Su Zhu and Kyle Davies, formerly associated with the collapsed crypto hedge fund Three Arrows Capital. The firm’s involvement has added further scrutiny to the ongoing controversies.
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