The post Crypto Exchange OX.FUN Counters Extortion Allegations Amid Liquidity Concerns appeared on BitcoinEthereumNews.com.

Crypto exchange OX.FUN is battling allegations of extortion after X messages were shared suggesting it has agreed to conditioning return of $1 million in frozen user funds in exchange for positive social media promotion. Direct messages shared on social media by artist collective JefeDAO on Sunday purportedly show that an OX.FUN representative offered a structured repayment plan of $200,000 monthly for five months, provided the affected user and others delete negative posts. On top of that, the rep wanted posts promoting the OX.FUN platform. “This is blackmail,” said the artist collective, JefeDAO. It claimed the exchange froze the funds after the group had been accused of market manipulation. OX.FUN maintains that JefeDAO conducted an “oracle manipulation attack” through aggressive selling of Jailstool tokens—the meme coin promoted by Barstool Sports founder Dave Portnoy—and claims the group violated its terms of service. .@nicodotfun the founder of @OXFUNHQ DMd us saying the only way to get the $1m USDC that they stole back is to give them free promotion for 5 months I literally know this is 100% fraud just based on the fact that it is highly unusual and suspicious for an exchange to request… pic.twitter.com/dNyIpBjMJA — jefeDAO (@thejefedao) February 23, 2025 Neither Ox.fun nor JefeDAO responded to a request for comment from Decrypt. “The user had his very first deposit of 1 million USDC on February 14, and within minutes started to sell JAILSTOOL aggressively,” OX.FUN said in a statement on X, describing trades that allegedly pushed prices down before Jefe “closed short positions immediately at as low as 0.034.” OX.FUN’s statement was tagged on X with a community note which said the exchange “is holding $1,000,000 USDC without evidence beyond their claims,” adding that it was “using the funds for extortion,” and “should be treated with caution without proof.” Community notes…

---

Filed under: News - @ February 25, 2025 12:22 am