OX.FUN has denied rumours of its insolvency circulating on social media over the past 24 hours.
In a statement posted on X on February 24, the crypto exchange dismissed the claims as a coordinated disinformation campaign designed to incite panic. It asserted that the platform remains fully operational, with no liquidity issues affecting user withdrawals.
Speculation about OX.FUN’s financial health began when reports surfaced that its liquidity had dropped to $180,000, raising fears of a collapse. The controversy stems from a February 14 incident involving JefeDAO, a decentralized autonomous organization, which deposited $1 million in USDC into the exchange.
According to OX.FUN, JefeDAO then attempted an oracle manipulation attack—an exploit designed to distort price data for fraudulent gains. In response, the exchange froze JefeDAO’s $1 million in USDC, claiming the move was necessary to protect the platform and its users. OX.FUN emphasized that no other user funds were affected and that withdrawals continued without interruption.
However, some have accused OX.FUN of extortion, alleging that it demanded JefeDAO either issue a public statement or pay $200,000 per month for “marketing” in exchange for unfreezing the funds. OX.FUN has strongly refuted these allegations, calling them a “coordinated FUD” attack—fear, uncertainty, and doubt—aimed at damaging its reputation. The exchange has pledged to release a detailed report outlining JefeDAO’s alleged misconduct.
The controversy has placed OX.FUN’s leadership under scrutiny, particularly given its past ties to the collapse of the $18 billion hedge fund Three Arrows Capital.
Meanwhile, the crypto sector has faced renewed security concerns following a major breach at Bybit. On February 21, the Dubai-based exchange suffered a hack targeting one of its Ethereum wallets, with over $1.4 billion allegedly stolen. Bybit resumed full operations within 12 hours, and CEO Ben Zhou assured users there were no further withdrawal limits or delays. Zhou also apologized for the disruption and promised a full security assessment and incident report in the coming days.
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