Crypto exchange OX.FUN has denied claims of insolvency and mass fund withdrawals, asserting that all withdrawal processes remain fully operational.
The platform blamed JefeDAO for attempting to manipulate the market and spread coordinated FUD after an alleged exploit attempt.
The controversy began when reports surfaced on social media about OX.FUN facing financial trouble and freezing nearly $1 million USDC. Some insiders claimed the exchange had become insolvent after significant withdrawals, with its liquidity reportedly falling to just $180,000. The rumors intensified amid concerns following Bybit’s recent security breach.
OX.FUN refuted these allegations, stating that only JefeDAO was affected. According to the exchange, JefeDAO deposited $1 million USDC on February 14, 2025, before engaging in an oracle manipulation attack on the JAILSTOOL token. The exchange alleges that JefeDAO aggressively sold the token within minutes, placed large limit orders below fair value, and leveraged the price drop to close short positions at a profit. As a result, the platform froze JefeDAO’s funds, prompting what OX.FUN described as a retaliatory misinformation campaign.
OX.FUN emphasized that JefeDAO’s actions directly violated its Terms of Service and compromised market integrity. The exchange maintains that all other users remain unaffected and that withdrawal services are operating normally.
The incident highlights the growing security concerns within the crypto industry, as market manipulation tactics and exchange-related controversies continue to rise. In 2024, WazirX suffered a major security breach, resulting in over $235 million in losses, underscoring the persistent risks faced by crypto platforms.
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