Su Zhu, founder of embattled crypto exchange OXFun, faces fresh allegations of financial misconduct linked to its impending collapse. Previously infamous for the $3.6 billion 3AC hedge fund fraud, Zhu reportedly syphoned user funds as OXFun’s liquidity nosedived below $1.7 million.
Leaked documents suggest he diverted portions to a Singapore strip club, splurging on entertainers. Meanwhile, the exchange denies insolvency claims despite mounting evidence.
Frozen Funds Spark Extortion Allegations
OXFun allegedly froze $1 million deposited by the decentralised group JefeDAO, demanding daily social media promotions for its return. Internal messages reveal threats to withhold funds unless JefeDAO paid $200,000 monthly for “marketing.” Shockingly, OXFun cited vague “terms violations” only after freezing assets, not during transactions. Critics label this a desperate cash grab ahead of bankruptcy.
Insolvency Confirmed Through Internal Leaks
Former employees confirm OXFun’s liquidity plummeted to $180,000 before withdrawals halted. “Triaging funds” which is corporate jargon for empty coffers. This coincided with mass user exits. Blockchain analysts corroborate the crisis, revealing near-zero reserves. Nevertheless, OXFun publicly dismisses insolvency as an “isolated incident,” contradicting internal reports.
Influencers and Greed Blamed for Crisis
Industry watchdogs blame reckless speculation, paid promoters, and user complacency. “OXFun gambled with deposits like casino chips,” claimed one analyst. Influencers who aggressively promoted the platform now remain silent. Meanwhile, retail traders face losses, repeating a cycle of trusting unregulated “casinos.” Additionally, high fees and opaque policies worsened distrust.
Withdraw Immediately!
Affiliates and employees rapidly distanced themselves as leaks exposed toxic internal culture. “Withdraw immediately,” urged crypto forums, citing OXFun’s history of market manipulation. However, frozen accounts leave many stranded. JefeDAO’s public battle highlights the risks of centralised exchanges, reigniting “not your keys, not your crypto” debates.
Legal Reckoning Looms for OXFun
Regulators in Asia and North America monitor the fallout, with potential lawsuits targeting Zhu’s operations. Singaporean authorities may probe fund misuse, including strip club expenditures. Meanwhile, victims demand influencer accountability for undisclosed paid promotions. Legal experts warn OXFun’s terms may not shield it from fraud charges.
Lessons Ignored, History Repeated
This collapse mirrors past exchange rug pulls, underscoring crypto’s unregulated risks. “Every cycle breeds scams, yet users ignore red flags,” lamented trader Maria Lin. Experts urge self-custody wallets and due diligence. Still, OXFun’s downfall signals a systemic issue: platforms prioritising profit over security.
In conclusion, as OXFun’s empire crumbles, users face harsh realities of crypto’s Wild West. With Zhu’s legacy further tarnished, the industry braces for regulatory crackdowns. For now, the saga serves as a grim reminder: trust requires transparency, and hype often hides hazards.
