Crypto Exchange OX.FUN Attempts to Extort User for $1 Million, Faces Collapse and Controversy

OX.FUN, a gamified perpetual futures exchange helmed by Su Zhu, the infamous co-founder of the collapsed Three Arrows Capital (3AC), is making headlines again but for all that wrong reasons. Recent revelations paint a grim picture: OX.FUN’s liquid assets, excluding its native OX token, have reportedly shrunk to a meager $1.7 million, sparking fears of yet another high-profile failure tied to Zhu’s name. This unfolding crisis comes with allegations of extortion, asset depletion, and a troubling lack of transparency, raising serious questions about the platform’s viability and Zhu’s credibility.

OX.FUN burst onto the scene as a bold reimagining of crypto trading, promising a memecoin driven ecosystem where users could trade tokens like OX, Milk, and Autism while earning rewards for completing “missions.” Launched in early 2024, it followed the abrupt shutdown of OPNX, another Zhu and Kyle Davies venture that folded in February of that year after failing to gain traction as a bankruptcy claims exchange.

A New York Magazine article from 2024, titled “They Are Very Comfortable With Lying,” offers a scathing backstory, detailing Zhu and Davies’s fall from grace after 3AC’s 2022 collapse, which wiped out billions and triggered a cascade of crypto firm failures. The piece portrays OX.FUN as their latest attempt at reinvention, built on the ashes of past ventures and fueled by a cavalier attitude toward accountability. With Zhu fresh off a four-month prison stint in Singapore for contempt of court tied to 3AC’s liquidation, OX.FUN was meant to be his redemption arc—but it’s quickly looking like a repeat of history.

Asset Woes and Extortion Allegations Threaten OX.FUN’s Future

The controversy intensified when OX.FUN was accused of extorting JefeDAO, a collective of artists, by refusing to allow them to withdraw a $1 million USDC deposit unless they agreed to promote the exchange for five months. These claims, supported by leaked direct messages showing OX.FUN’s demands, have sparked criticism and outrage. It’s also brought on additional scrutiny that appears to show that OX.FUN is on the brink of collapse, possibly with only $1000 USDC left.

Zhu’s history looms large over this story. After 3AC’s collapse, he and Davies faced accusations of fraud and mismanagement, with liquidators chasing them across continents to recover assets. Zhu’s brief imprisonment and subsequent house arrest did little to deter him; he emerged touting OX.FUN as a “revolutionary” venture, leaning on his polished Wall Street persona to win over skeptics. Yet, the New York Magazine piece reveals a pattern of evasion and denial, noting how Zhu framed his prison time as a transformative experience while dodging accountability for 3AC’s $1.1 billion insolvency claim. Davies, meanwhile, remains at large, last spotted in Portugal, leaving OX.FUN’s leadership murky.

As we watch this slow-motion trainwreck, investors who bought into OX.FUN’s meme-fueled hype now face the prospect of losses, while critics argue it’s another chapter in Zhu and Davies saga of fraud and lies. With assets dwindling and allegations mounting, OX.FUN teeters on the edge of collapse, threatening to drag its users down with it.