The Su Zhu and Kyle Davies-backed crypto change OXFUN claims it has suffered an “oracle manipulation attack” by the hands of a consumer spreading “coordinated FUD” about insolvency.
OXFUN accused JefeDAO of aggressively promoting Dave Portnoy’s JAILSTOOL memecoin after depositing $1 million price of USDC. It claims that JefeDAO pushed the market low and closed his quick positions as little as 0.0034 in the course of the “attack.”
Good morning OXFUN.
Over the previous months, OXFUN has centered on turning into a premier and trusted change for customers to commerce belongings. It’s heartbreaking to see a bunch of dangerous actors try to revenue off of unlawful market manipulation after which proceed to aim to tarnish…
— OX.FUN (@OXFUNHQ) February 24, 2025
OXFUN’s put up additionally acquired a neighborhood be aware that accused the change of extortion.
At this time, OXFUN stated, “This behavior is explicitly against our Terms of Service, is against the interest of other users of OXFUN, and thus his funds are frozen.”
OXFUN deflected criticism of this stance, even calling one consumer “retarded” after they claimed JefeDAO’s buying and selling wasn’t unlawful and as an alternative simply arbitrage or hedging.
Chainalysis notes that an oracle manipulation assault includes utilizing massive quantities of crypto to inflate the buying and selling quantity of low-liquidity tokens and in flip improve costs that might not be mirrored within the wider market.
OXFUN and JefeDAO’s weekend feud
This dispute started on February 21 when JefeDAO revealed that the change had frozen $1 million of deposited funds whereas citing a violation of its phrases of service. JefeDAO was then blocked from most of OXFUN’s accounts and repeatedly instructed that they had violated OXFUN’s phrases.
JefeDAO then revealed that OXFUN’s founder “Nico” tried to barter a deal whereby JefeDAO must promote the crypto change each day and make sure the scenario was good as a way to obtain their $1 million again over 5 months.
They stated, “I literally know this is 100% fraud just based on the fact that it is highly unusual and suspicious for an exchange to request the promotion of their social media accounts as a condition to return someone’s funds.”
The change rejected insolvency rumours yesterday and stated JefeDAO helped coordinate them. “Jefe is attempting to increase the pressure on social media to receive his proceeds from crime, these tactics will not work,” OXFUN said.
Protos has reached out to OXFUN, its founder Nico, and JefeDAO for remark.
