OX.FUN finds itself in controversy after accusations of blocking fund withdrawals and manipulation.
Allegations Against OX.FUN
OX.FUN has come under fire after the NFT artist collective JefeDAO accused it of blocking a $1 million USDC withdrawal. JefeDAO claims the platform’s founder, Nicolas Bayle, tried to coerce them into deleting negative posts in exchange for a gradual release of funds.
OX.FUN's Response to Allegations
Su Zhu-backed OX.FUN denies insolvency concerns, stating all withdrawals are processing normally. The exchange claims JefeDAO engaged in an oracle manipulation attack, which they deemed a violation of trading rules, leading to the fund freeze.
Financial Troubles and Token Crash
As the situation unfolded, Coinbase's head of product, Conor Grogan, suggested OX.FUN’s reserves are mainly composed of its own OX token rather than stable assets like USDC, raising fears of a potential liquidity crisis.
While OX.FUN insists user funds are safe, concerns over its financial stability are putting the company's future into question.
