Crypto Exchange OX.FUN Denies Insolvency Claims, Calls It “Coordinated FUD”

• OX.FUN denies insolvency rumors, calling them a “coordinated FUD campaign,” and assures that withdrawals are processing normally.
• The exchange blames JefeDAO for attempting an oracle manipulation attack, leading to the freeze of his $1 million USDC deposit.
• Concerns over exchange security continue to rise as platforms face growing risks, with past incidents like WazirX’s $235 million hack still fresh.

OX.FUN, a crypto exchange, has responded to allegations of insolvency and a reported freeze of nearly $1 million USDC. The exchange dismissed these concerns, stating that all withdrawals are processing without issue. It described the claims as a “coordinated FUD campaign,” aiming to destabilize the platform.

Social Media Buzz on Alleged Insolvency

Speculation about OX.FUN’s financial health surged on social media platform X, with reports suggesting a mass exodus of funds. Some sources claimed the exchange was left with only $180,000 in liquidity after users withdrew large amounts. These discussions emerged shortly after Bybit suffered a significant hack, further fueling concerns.

The exchange clarified that no users, except for JefeDAO, were affected by the financial concerns. OX.FUN accused JefeDAO of attempting to exploit the platform and later launching a social media campaign to spread misinformation. The exchange stated that JefeDAO’s funds were frozen due to his actions.

OX.FUN provided details on JefeDAO’s alleged actions, claiming he engaged in an oracle manipulation attack. According to the exchange, JefeDAO deposited $1 million USDC on February 14, 2025. Shortly after, he aggressively sold JAILSTOOL tokens and placed large limit orders below the fair market price.

Market Distortion and Short Positioning

The exchange reported that JefeDAO executed trades that pushed the token price below $0.04, allowing him to close short positions at a significant discount. OX.FUN maintained that these actions violated its Terms of Service and harmed other traders on the platform.

A growing number of individuals express security worries about cryptocurrency exchange protection at this point. In 2024 WazirX became victim to a $235 million hack which exposed the security risks digital asset platforms must face. The company seeks to comfort its platform users regarding their unanswered questions about business operational stability.