13.08.2025 10:08
Odin.fun, a Bitcoin-based memecoin launchpad and trading platform, suffered a significant security breach on August 12th, resulting in the loss of approximately $7 million worth of Bitcoin (BTC). This marks the platform's fourth security incident since the start of 2024, raising serious concerns about its long-term viability and security protocols.
The attack, identified as a sophisticated liquidity manipulation scheme, involved the attackers strategically inflating the price of assets within Odin.fun's liquidity pools. Exploiting a vulnerability in the platform's automated market maker (AMM) system – a recent update, according to Odin.fun's co-founder – they manipulated the price to extract a substantial amount of Bitcoin without returning the equivalent paired assets. This resulted in a loss of 58.2 BTC, a significant depletion of the platform's reserves. News of the exploit initially surfaced via a community report on X, shared by PeckShield, highlighting a dramatic drop in Bitcoin deposits within a two-hour period.
Immediately following the discovery of the breach, Odin.fun swiftly suspended all trading and withdrawal services to mitigate further losses. Co-founder Bob Bodily publicly acknowledged the incident, attributing it to a vulnerability in the recently updated AMM system and revealing that the perpetrators primarily appear linked to groups operating within China. Although the platform's treasury lacks sufficient funds to fully compensate all affected users, Bodily has promised a comprehensive plan to address their losses. He also issued a pointed warning to the attackers, urging the return of the stolen funds.
In response to this major security incident, Odin.fun has initiated several crucial steps. A leading cybersecurity firm has been engaged to conduct a thorough, week-long security audit of the platform's systems. Simultaneously, the platform has actively collaborated with US law enforcement agencies and prominent cryptocurrency exchanges, including OKX and Binance, to facilitate the investigation and potentially recover the stolen Bitcoin. These exchanges are cooperating with Chinese authorities in pursuing the perpetrators.
