OX.FUN, a crypto exchange, has strongly refuted rumors of insolvency and claims of a mass withdrawal of funds, calling these reports “coordinated FUD” (fear, uncertainty, and doubt). The exchange addressed allegations that nearly $1 million USDC was frozen, asserting that all withdrawals are processing normally.
Countering the FUD Claims
The rumors began circulating on social media after reports suggested that OX.FUN had experienced a significant liquidity drop to just $180,000. This followed reports of a mass exodus of funds, raising concerns about the exchange’s solvency. The timing coincided with the aftermath of a major hack at Bybit, further fueling speculation. However, OX.FUN dismissed these claims, stating that no users were affected, except for JefeDAO.
Blaming JefeDAO for Exploiting the System
OX.FUN placed the blame squarely on JefeDAO, accusing the entity of attempting to manipulate the market using an oracle attack. According to the exchange, JefeDAO deposited $1 million USDC into the platform on February 14, 2025, and then began aggressively selling the token JAILSTOOL. The exchange alleges that JefeDAO placed large limit orders below the fair price—$600,000 worth at $0.048 and additional orders at $0.045, when the fair price was $0.05. This manipulation allegedly drove the price down to $0.034, allowing JefeDAO to profit from closing its short positions.
OX.FUN clarified that such actions violated its Terms of Service and went against the interests of other users on the platform. In response to these actions, JefeDAO’s funds were frozen.
The Broader Context
This incident highlights the ongoing volatility and manipulation risks within the crypto market, which has seen increasing participation but also rising exchange hacks and market manipulation efforts. For example, in 2024, WazirX reported a significant hack, losing over $235 million in user funds. Despite these challenges, OX.FUN asserts that it is functioning normally, with all withdrawals running smoothly and no widespread issues affecting its users.
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