The Su Zhu and Kyle Davies-backed crypto trade 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 value of USDC. It claims that JefeDAO pushed the market low and closed his brief positions as little as 0.0034 in the course of the “attack.”
Good morning OXFUN.
Over the previous months, OXFUN has targeted on turning into a premier and trusted trade for customers to commerce belongings. It’s heartbreaking to see a bunch of unhealthy actors try and revenue off of unlawful market manipulation after which proceed to try to tarnish…
— OX.FUN (@OXFUNHQ) February 24, 2025
OXFUN’s submit additionally obtained a neighborhood word that accused the trade of extortion.
Right this moment, OXFUN mentioned, “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 a substitute simply arbitrage or hedging.
Chainalysis notes that an oracle manipulation assault entails utilizing massive quantities of crypto to inflate the buying and selling quantity of low-liquidity tokens and in flip enhance costs that will not be mirrored within the wider market.
OXFUN and JefeDAO’s weekend feud
This dispute started on February 21 when JefeDAO revealed that the trade 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 trade each day and ensure the scenario was good in an effort to obtain their $1 million again over 5 months.
They mentioned, “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 trade rejected insolvency rumours yesterday and mentioned 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.
