OX.FUN Denies Insolvency Rumors, Blames JefeDAO for Market Manipulation

Crypto exchange OX.FUN has addressed rumors of insolvency and the freezing of nearly $1 million in USDC, stating that all withdrawals are processing normally and dismissing the claims as "coordinated FUD".

Earlier today, social media platforms were abuzz with discussions about OX.FUN's alleged insolvency and a mass exodus of funds, with reports suggesting that $1 million in USDC had been frozen. Several employees of the crypto exchange reported that the platform had become insolvent after a massive withdrawal of funds by users, with the company's remaining liquidity dropping to just $180,000.

In response to the crisis, OX.FUN issued a statement claiming that no users, aside from JefeDAO, were impacted by the recent financial crisis. The platform alleged that JefeDAO engaged in an attempt to exploit the system. In an official statement, the crypto exchange stated:

"All withdrawals are processing normally. This is coordinated FUD. No users were affected by the actions of JefeDAO aside from JefeDAO. He attempted to exploit the platform, got all of his funds frozen, and now is attempting a social media campaign".

OX.FUN later issued a detailed statement accusing JefeDAO of executing an oracle manipulation attack. According to the exchange, JefeDAO made a $1 million USDC deposit on February 14, 2025, and began selling the token JAILSTOOL aggressively between 05:46:56 and 05:57:06 UTC. The exchange asserted that Jefe placed large limit orders below the fair price, enabling JefeDAO to close its short positions at a low of $0.034.

The crypto market has seen an increase in exchange hacks in recent years. In 2024, WazirX reported the largest hack, losing more than $235 million in user funds.