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<figure class="wp-block-image aligncenter size-large"><a href="https://coincu.com/wp-content/uploads/2025/02/Su-Zhu-backed-OX.FUN-Faces-Accusations-Over-Frozen-Funds.jpg" rel="noopener noreferrer nofollow"><img src="https://coincu.com/wp-content/uploads/2025/02/Su-Zhu-backed-OX.FUN-Faces-Accusations-Over-Frozen-Funds-1024x576.jpg" alt="" class="wp-image-324056"></a><figcaption class="wp-element-caption"></figcaption></figure><p><strong>Key Points:</strong></p><ul class="wp-block-list"><li><em>Su Zhu-backed OX.FUN is accused of withholding a $1M USDC withdrawal, sparking allegations of insolvency and manipulation.</em></li><li><em>OX.FUN claims JefeDAO violated trading rules, justifying the fund freeze, while JefeDAO accuses the platform of extortion.</em></li><li><em>The controversy has led to community backlash, with OX token prices plunging over 20% in 24 hours and over 55% in the past month.</em></li></ul><p>Su Zhu-backed OX.FUN is under fire for freezing a $1M USDC withdrawal, with accusations of insolvency and manipulation shaking confidence in the DEX.</p><h2 class="wp-block-heading" id="su-zhu-backed-ox-fun-accused-of-withholding-user-funds">Su Zhu-backed OX.FUN Accused of Withholding User Funds</h2><p><a href="https://coincu.com/248190-foresight-ventures-dissociates-oxfun-fundraising/" rel="noopener noreferrer nofollow">OX.FUN</a>, a decentralized exchange (DEX) specializing in derivatives trading, has come under scrutiny after JefeDAO, an NFT artist collective, <a href="https://x.com/thejefedao/status/1893724915607744898" rel="noopener noreferrer nofollow">alleged</a> that the platform blocked their $1 million USDC withdrawal. JefeDAO claims that OX.FUN’s founder, Nicolas Bayle, attempted to coerce them into deleting negative posts about the exchange in exchange for the gradual release of their funds.</p><p>The dispute escalated when JefeDAO refused the offer, publicly labeling OX.FUN as a scam. This triggered a wave of criticism from the crypto community, with many users <a href="https://x.com/anon_rip/status/1893741307153227973" rel="noopener noreferrer nofollow">condemning</a> the exchange’s actions and warning others to avoid it.</p><figure class="wp-block-image aligncenter size-full"><a href="https://coincu.com/wp-content/uploads/2025/02/User-@anon_rip-condemned-the-actions-of-the-OX.FUN-exchange-and-warned-others-to-stay-away.png" rel="noopener noreferrer nofollow"><img src="https://coincu.com/wp-content/uploads/2025/02/User-@anon_rip-condemned-the-actions-of-the-OX.FUN-exchange-and-warned-others-to-stay-away.png" alt="" class="wp-image-324053"></a><figcaption class="wp-element-caption"><em>User @anon_rip condemned the actions of the OX.FUN exchanged and warned others to stay away.</em></figcaption></figure><h2 class="wp-block-heading" id="strong-su-zhu-backed-ox-fun-denies-accusations-claims-market-manipulation-strong"><strong>Su Zhu-backed OX.FUN Denies Accusations, Claims Market Manipulation</strong></h2><p>In response, Su Zhu-backed OX.FUN <a href="https://x.com/OXFUNHQ/status/1893881745206038571" rel="noopener noreferrer nofollow">released</a> a statement denying insolvency concerns, <a href="https://x.com/OXFUNHQ/status/1893824594441847271" rel="noopener noreferrer nofollow">asserting that</a> "all withdrawals are processing normally".</p><p>The exchange claimed that JefeDAO had engaged in an "oracle manipulation attack" by placing large limit orders below market value and then closing short positions at a profit. OX.FUN argues that this activity violated their trading rules, leading to the freezing of JefeDAO’s funds.</p><figure class="wp-block-image aligncenter size-full"><a href="https://coincu.com/wp-content/uploads/2025/02/The-exchange-OX.FUN-claimed-that-JefeDAO-had-engaged-in-an-oracle-manipulation-attack-and-violated-their-trading-rules-leading-to-the-freezing-of-JefeDAOs-funds.png" rel="noopener noreferrer nofollow"><img src="https://coincu.com/wp-content/uploads/2025/02/The-exchange-OX.FUN-claimed-that-JefeDAO-had-engaged-in-an-oracle-manipulation-attack-and-violated-their-trading-rules-leading-to-the-freezing-of-JefeDAOs-funds.png" alt="" class="wp-image-324054"></a><figcaption class="wp-element-caption"><em>The exchange OX.FUN claimed that JefeDAO had engaged in an oracle manipulation attack, and violated their trading rules, leading to the freezing of JefeDAO’s funds.</em></figcaption></figure><p>JefeDAO, however, refuted these allegations, stating that their trades were legitimate and accusing OX.FUN of using social media pressure as an excuse to avoid processing withdrawals. The controversy has fueled speculation about the exchange’s financial stability.</p><h2 class="wp-block-heading" id="ox-fun-faces-liquidity-concerns-as-ox-token-crashes">OX.FUN Faces Liquidity Concerns as OX Token Crashes</h2><p>As the situation unfolded, Coinbase’s head of product, Conor Grogan, <a href="https://x.com/jconorgrogan/status/1893821385065005079" rel="noopener noreferrer nofollow">suggested that</a> OX.FUN’s reserves mainly consist of its own OX token, rather than stable assets like USDC. According to Grogan, if the platform were to process JefeDAO’s withdrawal, its USDC balance would drop to nearly zero, raising fears of a potential liquidity crisis.</p><p>The controversy has taken a toll on OX’s market value, with the token plunging over 30% in the past 24 hours and over 55% in the last month.</p><figure class="wp-block-image aligncenter size-large"><a href="https://coincu.com/wp-content/uploads/2025/02/OX-token-price-movement-in-the-last-24-hours-screenshot-from-CoinMarketCap-on-February-24-2025.png" rel="noopener noreferrer nofollow"><img src="https://coincu.com/wp-content/uploads/2025/02/OX-token-price-movement-in-the-last-24-hours-screenshot-from-CoinMarketCap-on-February-24-2025-1024x407.png" alt="" class="wp-image-324055"></a><figcaption class="wp-element-caption"><em>OX token price movement in the last 24 hours, screenshot from CoinMarketCap at 05:50 PM on February 24, 2025.</em></figcaption></figure><p>While OX.FUN insists user funds are safe, but the growing concerns over the exchange’s solvency and transparency have put its future into question.</p><figure class="wp-block-table"><table class="has-luminous-vivid-orange-color has-text-color has-link-color has-fixed-layout"><tbody><tr><td><em><strong>DISCLAIMER</strong>:&nbsp;The information on<a href="https://coincu.com/" rel="noopener noreferrer nofollow"> this website</a> is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.</em></td></tr></tbody></table></figure><a href="https://coincu.com/?p=324048" rel="noopener noreferrer nofollow">Read original article on coincu.com</a>

Su Zhu-backed OX.FUN Faces Accusations Over Frozen Funds

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