Odin.fun Loses $7M in BTC After Exploit Targets Liquidity Mechanism
Attackers exploited a vulnerability in the liquidity system of memecoin launchpad Odin.fun, draining 58.2 BTC (approximately $7 million) in a targeted manipulation that is being tied to hacking groups operating out of China.
According to co-founder Bob Bodily, the flaw was introduced during a recent update to Odin’s automated market-making (AMM) infrastructure. The exploit involved depositing valueless tokens like SATOSHI into Odin’s liquidity pools alongside bitcoin. This artificially inflated the token’s price by skewing the internal asset ratio, allowing attackers to withdraw BTC at a manipulated valuation.
Blockchain records show the protocol’s BTC holdings fell from 291 BTC to 232.8 BTC within hours.
“This was a coordinated and targeted attack,” Bodily wrote on X, adding that several malicious wallets traced to Chinese entities were involved. The breach was detected after community members noticed irregularities in liquidity movements, prompting immediate action from the team.
The manipulation succeeded due to the absence of external price validation in AMMs, which rely solely on on-chain token ratios. In low-liquidity pools, this makes them especially vulnerable to pump-and-withdraw schemes.
While the team has frozen suspicious accounts and secured remaining funds, Bodily admitted Odin’s treasury is not sufficient to fully cover the losses. A recovery plan is in development and a full audit is underway, with details to follow within a week.
Odin has also reached out to U.S. law enforcement and is coordinating with Binance and OKX, both of which are assisting in tracking the stolen assets and engaging local authorities in China.
