OX.FUN, Su Zhu-backed exchange, faces fraud accusations and insolvency rumors
OX.FUN, the Su Zhu-backed derivative exchange, is in turmoil. Amidst accusations of extortion, mass withdrawals, and suspicions of insolvency, the platform appears to be in trouble despite its attempts to downplay the situation. While internal messages suggest that only $180,000 of liquidity is left, OX.FUN firmly denies these allegations and dismisses them as coordinated FUD.
The controversy began with a dispute between OX.FUN and JefeDAO. According to JefeDAO, one of its members deposited 1 million USDC on the platform only to have any withdrawals denied without clear explanation. In response, OX.FUN founder Nicolas Bayle, also known as ‘Nico,’ accused JefeDAO of attempting market manipulation. However, the situation took an even murkier turn when JefeDAO revealed that Nico offered to return the funds under one condition: daily promotion of OX.FUN on social media for six months. JefeDAO argues that this requirement leaves no doubt about the fraudulent nature of the exchange.
In the face of these revelations, the crypto community wasted no time in reacting. Calls for mass fund withdrawals circulated, leading many users to empty their accounts. A digital bank run ensued, intensifying rumors of insolvency. OX.FUN attempted to quell the unrest by stating that ‘all withdrawals are being processed as usual’ and dismissing the accusations as a smear campaign. However, the lack of a clear response regarding reported layoffs and low liquidity only amplified distrust.
Behind OX.FUN lies the infamous name of Su Zhu. The former co-founder of Three Arrows Capital (3AC) has carried a tarnished reputation since the collapse of his hedge fund in 2022, leaving a financial black hole of several billion dollars. His involvement in OX.FUN alone was enough to trigger suspicion among many investors, and recent events only confirm their fears.
The future of OX.FUN appears increasingly uncertain. With accusations of extortion, opaque management, and a community ready to turn its back, the exchange is in a precarious position. If user funds are truly safe, why refuse to return JefeDAO’s without conditions? And why do so many employees seem to have been hastily laid off? These unanswered questions contribute to the crumbling ‘trust’ in OX.FUN.
In a market where transparency is essential, OX.FUN appears to be following in the footsteps of its predecessor, 3AC: promises, accusations, and perhaps soon, a collapse.
