Co-founder Bob Bodily said the project’s treasury cannot fully cover the losses, but the team is working on a “concrete plan” to compensate affected users.
Odin.fun, a Bitcoin-based memecoin launchpad and trading platform, lost 58.2 BTC worth about $7 million in a security breach, according to blockchain security firm PeckShield.
PeckShield reported Wednesday that 58.2 BTC was drained from the platform, citing information from an Odin.fun community member. User “web3xiaoba” explained that hackers executed a liquidity manipulation attack by adding tokens like SATOSHI to inflate prices, then withdrawing their liquidity to receive Bitcoin returns. The platform’s bitcoin deposits dropped from 291 BTC to 232.8 BTC in under two hours.
Eight hours after the breach, Odin’s fun co-founder, Bob Bodily, posted on X that the team was continuing to evaluate the total bitcoin losses.
“We are still assessing the exact amount of BTC lost, but as of right now, our company treasury isn’t big enough to cover the losses. The remaining funds in the platform are safe,” said Bodily.
The co-founder explained that the project identified a significant exploit in the platform’s automated liquidity market-making tool. Various threat actors, mainly tied to Chinese entities, took advantage of the vulnerability to steal bitcoin from the platform, according to Bodily.
Bodily also said that the team is working on a “concrete plan” to compensate affected users. “We have ideas…We’ll share details as soon as they are finalized.” The co-founder also noted that the platform is in contact with a security team to perform a full audit, which may take up to a week.
Odin.fun has contacted U.S. law enforcement and is cooperating with major crypto exchanges OKX and Binance, both of which have engaged Chinese authorities regarding the incident. The project claims to have substantial evidence against the perpetrators, including detailed records of their wallet activities.
In a message addressed to the exploiters, Bodily wrote: “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.”
