Bitcoin-focused meme coin launchpad Odin.fun has been exploited for 58.2 BTC in a liquidity manipulation attack targeting its automated market-making tool.

Suspicious transfers from the Bitcoin-powered protocol were first flagged by blockchain security firm PeckShield.

According to its Aug. 13 post, an Odin.fun community member using the handle “web3xiaoba” said the attackers manipulated liquidity by adding tokens such as SATOSHI to drive up prices, then pulled their liquidity to cash out in Bitcoin.

On-chain data showed the platform’s bitcoin reserves falling from 291 BTC to 232.8 BTC in less than two hours.

Eight hours after the breach, Odin.fun co-founder Bob Bodily confirmed the exploit and said the team was still assessing the scale of losses.

However, he acknowledged that the company’s treasury could not fully cover the damage, though remaining platform funds were secure.

Bodily explained that the vulnerability came from a flaw introduced in the platform’s most recent update to its automated liquidity market-making system. 

Several threat actors, which he linked to groups in China, exploited the bug to siphon Bitcoin from the protocol.

According to Bodily, Odin.fun had engaged a top-tier security team to conduct a full code audit, a process expected to take up to a week.

Trading and withdrawals will remain paused until the review is complete.

The platform has contacted US law enforcement and is coordinating with major exchanges OKX and Binance, both of which have engaged Chinese authorities. 

Bodily claimed the team had already identified “several groups who profited from the exploit”  and gathered evidence, including detailed wallet activity logs, to pursue legal action.

“You have a short window to return the funds before it is too late. This is not a negotiation. You have one chance to limit the consequences and avoid prosecution. Most of you have already been identified, and we will be sure to dedicate as much time and resources as required to recover what was stolen,” Bodily wrote in a message directed to the attackers.

The co-founder also said Odin.fun was preparing “a concrete plan” to compensate affected users, adding that details would be shared once finalised. 

“If you like ODIN•FUN, we think you will appreciate what we’re working on,” he wrote.

This is the second major disruption for Odin.fun in 2025. In April, the platform halted all trading and withdrawals after Bodily’s personal account was compromised. 

At the time, the CEO said the breach was isolated to his account and did not impact his Bitcoin wallet, but panic over the incident led to sharp price drops for multiple meme coins launched on the platform, including ODINDOG and ODINAPE.

Founded in February 2025 by the team behind Ordinals marketplace Bioniq, Odin.fun was designed as a Bitcoin-based Runes token marketplace and launchpad, drawing inspiration from Solana’s Pump.fun and Tron’s Sun Pump.

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