OX.FUN Refutes Insolvency Allegations Amid JefeDAO Dispute

OX.FUN, a crypto derivatives exchange tied to Three Arrows Capital's Su Zhu, has publicly denied insolvency rumors that surfaced on social media. The allegations, sparked by a user claiming to be a former employee, suggested only $180,000 remained for withdrawals. OX.FUN dismissed these claims as "coordinated FUD" and emphasized that withdrawal processes are functioning normally.

Onchain data from Arkham Intelligence indicates that OX.FUN holds nearly $1 million in assets, primarily in its native OX token. This contradicts the alleged insolvency, though the exchange has not addressed specifics like layoffs or the exact funds available.

The controversy coincides with an ongoing dispute between OX.FUN and JefeDAO. The conflict began in February when JefeDAO reported a $1 million deposit being frozen, with OX.FUN accusing the depositor of violating terms of service. Recently, JefeDAO accused OX.FUN of extortion, claiming the exchange offered to return funds in exchange for promotional activities. OX.FUN has since alleged that JefeDAO engaged in an "oracle manipulation attack" involving the JAILSTOOL memecoin to exploit short positions—a claim JefeDAO denies, calling OX.FUN's actions fraudulent.

Founded in January 2024 with advisory support from Su Zhu and Kyle Davies, OX.FUN operates as a gamified trading platform. The involvement of Zhu and Davies, linked to Three Arrows Capital's 2022 collapse, adds scrutiny to the exchange's current situation.