OX.FUN has accused JefeDAO of manipulation attack, claiming it deposited $1M USDC and engaged in aggressive trading to manipulate token price.
OX.FUN, a cryptocurrency exchange, has responded to allegations of insolvency and the freezing of nearly $1 million USDC.
The exchange responded to the initial discussions regarding the widespread exodus of funds by asserting that all withdrawals are being processed as expected and referring to the discussions as “coordinated FUD.”
OX.FUN Bursts Myth of Exchange Hack
The crypto exchange OX.FUN was the subject of much discussion on the social media platform X earlier today, as it was in the midst of a mass exodus of funds and was gradually drifting into insolvency.
It was also indicated in previous reports that $1 million in USDC has been frozen. Several employees of the crypto exchange reported that the platform became insolvent as a result of the substantial withdrawal of funds by users.
Additionally, reports indicated that the company’s remaining liquidity had dropped to a mere $180,000. The announcement coincides with a significant breach on the Bybit crypto exchange platform, which led to the loss of Ethereum.
The team was purportedly “triaging” the remaining funds to manage the crisis. Nevertheless, OX.FUN released a statement asserting that the recent financial crisis had no effect on consumers, with the exception of JefeDAO.
The platform also claimed that JefeDAO was involved in an attempt to exploit the system. The crypto exchange issued an official statement in which it stated:
“All withdrawals are processing normally. This is coordinated FUD. No users were affected by the actions of JefeDAO aside from JefeDAO. He attempted to exploit the platform, got all of his funds frozen, and now is attempting a social media campaign”.
Crypto Exchange Pins Blame on JefeDAO
OX.FUN, a cryptocurrency exchange, has released a comprehensive statement in which it accuses JefeDAO of conducting an oracle manipulation attack.
On February 14, 2025, JefeDAO deposited $1 million USDC, as indicated by the exchange. He allegedly began vigorously selling the JAILSTOOL token between 05:46:56 and 05:57:06 UTC shortly thereafter.
Additionally, OX.FUN crypto exchange claimed that Jeffe entered substantial limit orders below the fair price, including $600,000 in value at $0.048 and additional orders at $0.045, when the token’s fair price was $0.05.
Consequently, Jeffe exchanged the asset for $300,000. OX.FUN asserts that this activity resulted in the market price falling below $0.04, which allowed JefeDAO to settle its short positions at a low of $0.034.
“This conduct is explicitly in violation of our Terms of Service and is detrimental to the interests of other users on OXFUN,” the statement stated.
The number of crypto exchange breaches has increased as the crypto market’s participation continues to expand. In 2024, WazirX reported the largest breach, which resulted in the loss of over $235 million in user funds.
