Memecoin Launchpad Odin.fun Suffers $7M Bitcoin Liquidity Attack

Highlights:

• Hackers have stolen 58.2 BTC worth $7 million from memecoin launchpad Odin.fun.
• The breach involved a liquidity manipulation using worthless tokens like SATOSHI.
• Odin.fun is working with law enforcement and plans user compensation.

On August 13, blockchain security company PeckShield discovered an unusual drop of Bitcoin funds on memecoin launchpad Odin.fun. The abnormal outflow of funds was initially observed by a community member and led to the further investigation of liquidity pools in the platform. Within two hours, the number of Bitcoins in the reserve of Odin.fun dropped from 291 to 232.8, raising alarm.

PeckShield confirmed Odin.fun attackers took advantage of the liquidity system, depositing worthless tokens such as SATOSHI alongside Bitcoin. Since the platform was based on calculations of internal ratios, the token price was artificially inflated in the pool. After determining the fake value, hackers pulled liquidity, trading the worthless tokens in exchange for actual BTC. The attack drained 58.2 BTC worth approximately $7 million.

#PeckShieldAlert An @Odin_GodOfRunes community member reported that 58.2 $BTC (worth ~$7M) were drained from the platform.

– Hackers added liquidity (e.g., via $SATOSHI)
– Artificially inflated the token price
– Removed liquidity to receive BTC returns

Attacker Addresses:
-… pic.twitter.com/igSZZujB1I

— PeckShieldAlert (@PeckShieldAlert) August 13, 2025

This type of attack exploited the automated market-making system of Odin.fun. The lack of external price validation made such a system prone to failure when liquidity was thin. During the exploit, the native token of the platform, ODINDOG, dropped by 40%, and other listed tokens were also impacted.

Odin.fun Confirms Breach and Begins Damage Response

Shortly after the exploit, Odin.fun co-founder Bob Bodily acknowledged the hack publicly on X. He stated that the vulnerability was added during a recent update to the liquidity tool on the platform. Bodily further added that the attack was organized by numerous attackers, most of them affiliated with hacker groups in China who exploited the price manipulation flaw.

Apologies for the delay in responding to today’s event. We know it’s been over 8 hours since the exploit and our silence has likely been frustrating for many of you. We wanted to speak sooner but needed time to verify the facts and take immediate action to protect user funds.…

— Bob Bodily, PhD 👋 | #BTC #ETH #ICP 🧙🏽‍♂️ (@BobBodily) August 13, 2025

As a countermeasure, the platform immediately suspended all trading and withdrawals in order to prevent further losses. Although Bodily promised users that the remaining funds were safe, he admitted that the treasury of Odin.fun could not fully absorb the $7 million loss. However, he pledged to the affected users a compensation plan that will be set in place after a week-long audit, which is currently in progress.

To facilitate the investigation, Odin.fun engaged one of the most highly regarded security teams in blockchain and reached out to U.S. law enforcement. In addition, crypto exchanges Binance and OKX have also come on board in tracing the stolen funds. Both exchanges are reportedly collaborating with the Chinese government to track wallets and possibly freeze suspicious assets.

Bodily also publicly cautioned the attackers, stating,

“You have a small deadline to pay back the funds before you know it is too late. A major portion of you have already been identified and we will use whatever time and resources needed in recovering what was stolen.”

Rising Crypto Exploits Put Pressure on Platforms

The hack on the memecoin launchpad Odin.fun is one of many exploits of cryptocurrency in 2025. It is also the fourth reported breach to the platform since 2024. In April 2025, a defect occurred in the Bitcoin sign-in procedure of Odin.fun, resulting in the loss of $178,000. That incident had already brought some security concerns to the users despite being patched.

Meanwhile, crypto hacks soared across the industry in July. According to the report by Crypto2Community, 17 individual attacks led to losses of $142 million, up by 27% from June. Though this number has not yet exceeded the $266 million registered in July 2024, it indicates a change in the hackers’ behavior. Off-chain manipulation and social engineering have become very popular instead of depending on smart contract vulnerabilities.