Crypto exchange OX.FUN is embroiled in controversy after leaked conversations with users surfaced online. According to the screenshots, platform representatives allegedly offered to unfreeze $1 million in funds — but only if users deleted negative posts and promoted the exchange on social media.
OX.FUN denied the accusations, claiming that the funds were frozen due to alleged manipulation involving the Jailstool token. However, the crypto community remains skeptical, with many suspecting the exchange is struggling with insolvency and using pressure tactics on users.
How OX.FUN Became the Center of a Scandal
On February 23, 2025, the NFT artist collective JefeDAO published screenshots of conversations with an OX.FUN representative. In the messages, the exchange proposed returning the frozen funds in installments — $200,000 per month over five months — but only if users started promoting the platform on X (formerly Twitter) and removed critical posts.
JefeDAO labeled the offer as blackmail. According to the group’s representatives, the funds were initially frozen under the pretext of market manipulation accusations.
A day later, on February 24, OX.FUN responded in a post on X, alleging that JefeDAO had manipulated the Jailstool token's price by exploiting a price oracle. The exchange claimed that JefeDAO had deposited $1 million in USDC on February 14 and then mass-sold JAILSTOOL tokens to artificially lower their price before repurchasing them at a discount.
Lack of Evidence and Liquidity Concerns
The crypto community met OX.FUN's explanation with skepticism. In the comments on the exchange’s post, Community Notes flagged that OX.FUN provided no evidence supporting its claims against JefeDAO.
Additionally, users pointed out a possible connection between the exchange and Su Zhu and Kyle Davies, co-founders of the collapsed hedge fund Three Arrows Capital (3AC).
Coinbase Director Conor Grogan also questioned OX.FUN’s financial stability. Citing data from Arkham Intelligence, he stated that the exchange’s liquidity — excluding its native token—was less than $1.7 million. He argued that if OX.FUN processed a $1 million withdrawal request, it would be left with only about $1,000 in USDC.
"There’s a chance they have untracked wallets, but let’s be honest — it’s Su Zhu," Grogan wrote.
OX.FUN has yet to respond to these allegations. The situation continues to develop, with the crypto community closely monitoring the exchange’s next moves.
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