Crypto exchange OX.FUN is ensnared in a scandal following claims of its financial instability. The exchange refutes these claims, insisting on its normal operations.
Accusations and OX.FUN's Response
Crypto exchange OX.FUN, backed by co-founders of the hedge fund Three Arrows Capital, is under scrutiny following accusations that its assets mostly comprise its internal OX token. The exchange denies these claims, stating in an X post that all withdrawals are processing normally.
Disputes Between OX.FUN and JefeDAO
The conflict began when JefeDAO claimed that one of its members couldn't withdraw their deposit from the exchange. OX.FUN founder Nicolas Bayle accused JefeDAO of conducting oracle manipulation attacks by placing orders below market prices. JefeDAO refuted these allegations, labeling Bayle's offer to return the funds in exchange for promotional support as fraudulent.
Financial Situation and Repercussions
Coinbase's head of product, Conor Grogan, noted that OX.FUN's wallets mostly hold its own OX tokens. It was also suggested that after processing a $1 million USDC withdrawal, its USDC balance would drop to $1,000.
The situation raises questions about the financial viability of OX.FUN and causes concern among its users.
