The Su Zhu and Kyle Davies-backed crypto trade OXFUN claims it has suffered an “oracle manipulation attack” by the hands of a person 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 brief positions as little as 0.0034 in the course of the “attack.”
Learn extra: Solana loses a 3rd of its market cap — is memecoin season formally over?
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 person “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 entails utilizing giant quantities of crypto to inflate the buying and selling quantity of low-liquidity tokens and in flip enhance costs that is probably not 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 informed 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 make sure the scenario was good with a purpose 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 acknowledged.
Learn extra: 3AC co-founder Su Zhu despatched to jail for 4 months in Singapore
Certainly, the insolvency declare from “part-time satirical shitposter” @stevie_ravioli mentioned the trade had $180,000 USD left. Arkham exhibits that the trade is presently holding $1 million in its portfolio. Over $979,000 of that is made up of OX tokens whereas $21,000 and $9,000 are made up of Ether and OX Coin respectively.
Protos has reached out to OXFUN, its founder Nico, and JefeDAO for remark.
Bought a tip? Ship us an e mail or ProtonMail. For extra knowledgeable information, comply with us on X, Instagram, Bluesky, and Google Information, or subscribe to our YouTube channel.