Bitcoin-based memecoin launchpad Odin.fun lost 58.2 BTC (~$7 million) in a liquidity manipulation exploit on August 12, 2025, marking its fourth security breach since 2024. Blockchain security firm PeckShield confirmed attackers exploited a vulnerability in the platform's automated market-making system, adding tokens like SATOSHI to liquidity pools to artificially inflate prices before withdrawing Bitcoin returns without returning paired assets.
BTC deposits plummeted from 291 BTC to 232.8 BTC within two hours during the attack. Co-founder Bob Bodily acknowledged the treasury cannot cover losses but pledged a compensation plan for affected users. Trading and withdrawals remain paused as Odin.fun collaborates with exchanges OKX and Binance, Chinese authorities, and U.S. law enforcement to track perpetrators. Bodily warned hackers: "You have a short window to return funds before it's too late... Most of you are already identified."
The breach caused ODINDOG, Odin.fun's native token, to plunge 40% amid community backlash over recurring vulnerabilities. A full security audit is underway, expected to take a week, while the platform faces scrutiny following a $178,000 April 2025 hack from "Sign-In With Bitcoin" flaws. This incident contributes to a broader surge in DeFi exploits, with July 2025 seeing $142 million in crypto losses.