The post OX.FUN Exchange Disputes $1M USDC Withdrawal Freeze appeared on BitcoinEthereumNews.com.

TLDR Crypto exchange OX.FUN, backed by Three Arrows Capital co-founder Su Zhu, faces insolvency accusations after a dispute with NFT artist JefeDAO over a frozen $1 million USDC deposit JefeDAO claims funds were wrongfully frozen, while OX.FUN accuses them of attempting market manipulation through an oracle attack Coinbase’s head of product revealed OX.FUN’s wallets primarily contain their own OX tokens, with USDC reserves potentially dropping to $1,000 after pending withdrawals The exchange denies all insolvency claims, stating withdrawals are processing normally and calling the situation “coordinated FUD” The incident occurs amid broader concerns in the crypto exchange sector, following recent hacks at platforms like Bybit and WazirX A dispute over a frozen $1 million deposit has sparked concerns about the financial health of crypto exchange OX.FUN, a platform backed by Three Arrows Capital co-founder Su Zhu. The controversy began when NFT artist JefeDAO reported that one of its members could not withdraw their USDC deposit from the exchange. The exchange, which specializes in gamified crypto derivatives trading, quickly responded to the allegations on February 24, 2025. OX.FUN’s management posted on social media platform X that all withdrawals were processing normally and accused JefeDAO of launching a “coordinated FUD” campaign. 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. Nico will put out a… https://t.co/jJRyFSFkiL — OX.FUN (@OXFUNHQ) February 24, 2025 Nicolas Bayle, the founder of OX.FUN, claimed that JefeDAO had attempted to manipulate the market through an oracle attack. According to the exchange, JefeDAO deposited $1 million in USDC on February 14, 2025, and then began aggressive selling of a token called JAILSTOOL. The exchange provided specific details…

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Filed under: News - @ February 24, 2025 9:31 am