A new cryptocurrency scandal is unfolding as OX.FUN, the gamified futures exchange platform, faces accusations of attempted extortion and rapidly depleting assets. The exchange, led by controversial figure Su Zhu, formerly of the failed Three Arrows Capital (3AC), now reportedly holds just $1.7 million in liquid assets, excluding its native OX token.
The platform has been accused of attempting to extort JefeDAO, an artists' collective, by refusing to release their $1 million USDC deposit unless they agreed to promote the exchange for five months. Leaked messages appear to confirm these allegations, leading to widespread condemnation from the crypto community.
Recent investigations suggest an even darker picture, with reports indicating OX.FUN's reserves may have plummeted to as low as $1,000 USDC, pointing toward imminent collapse.
The exchange, which launched in early 2024, marketed itself as an innovative trading platform where users could trade tokens like OX, Milk, and Autism while completing "missions" for rewards. This launch followed the failure of OPNX, another venture by Zhu and his partner Kyle Davies.
The controversy surrounding OX.FUN is amplified by Zhu's troubled history. Fresh from serving a four-month prison sentence in Singapore for contempt of court related to 3AC's liquidation, Zhu promoted OX.FUN as his comeback project. However, the platform appears to be following a similar trajectory to his previous failed ventures.
While Zhu attempts to manage the crisis, his partner Davies remains elusive, reportedly last seen in Portugal. The situation leaves investors and users increasingly concerned about their funds, as the platform shows signs of following the same path as 3AC, which resulted in a $1.1 billion insolvency claim.
The unfolding crisis at OX.FUN adds another chapter to the ongoing saga of cryptocurrency platform failures, leaving users and investors facing potential losses while raising questions about oversight in the crypto industry.