Odin.fun Suffer $7M Loss as Hackers Exploit Liquidity AMM

Odin. fun, a Bitcoin-based memecoin launchpad and trading platform, has fallen victim to a significant exploit, resulting in the theft of 58.2 BTC, valued at approximately $7 million.

The Breach, which occurred on August 12th, has raised serious concerns about the security and long-term viability of the platform.

The incident was initially brought to light by PeckShield on X, citing a report from a community member. Data revealed a dramatic decrease in Bitcoin deposits on the platform, plummeting from 291 BTC to 232.8 BTC in under two hours, confirming the severity and rapid execution of the attack.

Odin.fun Suffers $7M Breach

The exploit centered on a liquidity manipulation scheme. The threat actors strategically introduced assets, such as SATOSHI, into Odin.fun’s liquidity pools.

Notably, by inflating the price of these assets, they could withdraw liquidity, extracting BTC without providing adequate compensation in paired assets. This subtle manipulation of the platform’s automated market maker (AMM) system highlights a critical vulnerability in its design.

Following the Breach, Odin.fun co-founder Bob Bodily announced the immediate suspension of trading and withdrawals to prevent further losses. Bodily attributed the exploit to a flaw within the AMM system, introduced in a recent platform update, stating:

“Today we discovered a major exploit in our liquidity AMM which was introduced in our latest update. Several malicious users, primarily linked to groups in China, took advantage of this vulnerability to steal a significant amount of BTC from the platform.”

Acknowledging the gravity of the situation, Bodily admitted that the platform’s treasury is insufficient to refund affected users fully. However, he pledged to develop a comprehensive plan to compensate those impacted by the exploit.

Platform Reaction and Recovery Plan

In the wake of the attack, Odin.fun reported the incident to US law enforcement and is cooperating with exchanges OKX and Binance, which are assisting Chinese authorities in the ongoing investigation.

Moreover, Bodily issued a direct warning to the threat actor, urging them to return the stolen funds and ease the potential consequences, including prosecution. The team claims to possess substantial evidence, including wallet activity, linking individuals to the exploit.

The immediate impact of the Breach was a 40% decline in the value of ODINDOG, the native token of Odin.fun. While some users have commended the team’s transparency in addressing the issue, the incident has drawn concerns about the platform’s overall security.

Notably, attackers targeted Odin.fun before; in April 2025, they hacked the platform for $178,000, exploiting vulnerabilities in its “Sign-In With Bitcoin” authentication system.

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