OXFUN, a cryptocurrency exchange founded by Su Zhu and Kyle Davies, is facing allegations of insolvency after reportedly locking $1 million in user funds belonging to The Jefe DAO. The company has denied the claims, stating that the issue is isolated and not indicative of broader financial troubles. On-chain analysis suggests that OXFUN, which focuses on memecoin trading, has less than $1.7 million in assets excluding its native token. The situation has been further complicated by allegations from former employees and a public dispute with The Jefe DAO. OXFUN has issued a statement refuting the insolvency allegations, attributing them to market manipulation by bad actors. However, many in the cryptocurrency community remain skeptical about the platform's ability to meet withdrawal demands.