The cryptocurrency Derivative exchange OX.FUN, backed by Su Zhu - co-founder of Three Arrows Capital, has officially denied allegations related to the loss of solvency.

OX.FUN Confirms Normal Withdrawal Operations

On 25/2, OX.FUN posted on the X platform:

"All withdrawal transactions are still proceeding normally. This is a deliberate false rumor (FUD)."

This statement came after information emerged from the "stevie_ravioli" account on X claiming that OX.FUN had officially lost solvency. The post included screenshots of private messages from a recently fired employee, who claimed that the exchange only had around $180,000 left to process withdrawals as of the morning of 24/2.

However, OX.FUN did not address other allegations such as the status of employee layoffs or the actual remaining balance on the exchange. On-chain data from Arkham Intelligence shows that OX.FUN still holds nearly $1 million, mostly in the form of the native OX token.

Dispute Between OX.FUN And JefeDAO

The conflict began when JefeDAO announced on X that one of its members had deposited 1 million USDC into OX.FUN but was unable to withdraw the funds just a few hours later. OX.FUN cited a violation of the terms of use without providing specific details.

Nicolas Bayle (nicknamed Nico), the founder of OX.FUN, accused JefeDAO of deliberately exploiting the platform illegally. Nico emphasized:

"We do not tolerate fraudulent behavior. Protecting users is always our top priority."

On 25/2, JefeDAO continued to post that OX.FUN had offered to refund 1 million USDC on the condition that JefeDAO had to promote the platform daily on social media.

"This is completely fraudulent behavior. OX.FUN is a scam exchange and I will continue to speak out until I recover all my money," JefeDAO wrote on X.

Meanwhile, some members of the cryptocurrency community have called for withdrawing funds from OX.FUN, causing a surge in capital outflow from the exchange and fueling rumors of insolvency.

OX.FUN Accuses JefeDAO of Attacking and Manipulating Oracle

In retaliation, OX.FUN claimed that JefeDAO had carried out an "oracle manipulation attack". According to OX.FUN, JefeDAO used 1 million USDC to heavily sell the meme token JAILSTOOL, placing large sell orders below the market price (0.05 USD). When the price dropped to 0.034 USD, JefeDAO closed the Short position to profit.

"This behavior violates the terms of use and affects other users, so we have frozen JefeDAO's funds," OX.FUN stated.

However, JefeDAO refuted this accusation, stating that OX.FUN was only "damage control" after JefeDAO refused the offer to promote the platform.

OX.FUN was launched in 01/2024 with a gamified Derivative trading model. Su Zhu and Kyle Davies, the co-founders of the now-collapsed cryptocurrency hedge fund Three Arrows Capital, served as advisors for the project.