NFT Artist Blames OX.FUN Crypto Exchange for Liquidity Issues
Date: 2025-02-25 Author: Henry Casey Categories: BUSINESS
The conflict erupted when JefeDAO reported that a crypto exchange user had deposited 1 million USDC on the platform, but was later unable to return the money. According to the artist, OX.FUN founder Nicholas Bale offered to compensate the client on the condition that he would advertise the exchange on social media for five months for free.
“This is an obvious scam. An exchange should not require promotion in exchange for withdrawals,” JefeDAO said.
OX.FUN representatives denied accusations of financial problems and assured that withdrawal requests were being processed as usual. According to Bale, JefeDAO itself is deliberately spreading “fear, uncertainty, and doubt” in order to undermine the platform’s reputation. He also explained that the artist's funds were frozen due to a violation of the exchange's terms of service - JefeDAO allegedly used an oracle manipulation strategy by placing large limit orders below the market and closing short positions at depressed levels.
Conor Grogan, Coinbase's director of product development, expressed the opinion that the exchange may hold mainly its own OX tokens. He noted that after processing the request to withdraw 1 million USDC, the OX.FUN balance will decrease to $1,000, which may indicate serious liquidity problems.
Earlier in December 2023, Bloomberg reported on the release of Su Zhu, the co-founder of Three Arrows Capital, who was detained at the Singapore airport for obstructing the investigation into the fund's bankruptcy.
