Odin.fun Loses $7 Million in Bitcoin Due to Liquidity Exploit
Hackers exploited a vulnerability in the Bitcoin-based memecoin launchpad Odin.fun, draining 58.2 BTC, valued at approximately $7 million. The attack involved a sophisticated liquidity manipulation technique linked to Chinese hacking groups.
- The exploit targeted Odin's automated liquidity market-making system, which co-founder Bob Bodily described as having a critical flaw.
- Bitcoin reserves dropped from 291 BTC to 232.8 BTC in under two hours during the incident.
- Attackers used worthless tokens to create an inflated price ratio, allowing them to withdraw significant amounts of real BTC.
- Bodily stated that multiple threat actors coordinated to exploit this vulnerability.
- Community members flagged unusual liquidity movements, leading to the freezing of suspicious accounts.
- Odin's treasury is insufficient to cover losses, prompting plans for user compensation and a full security audit.
- The team has contacted U.S. law enforcement and is working with Binance and OKX to track the stolen funds.