Founder of Odinfun Admits Smart Contract Vulnerability, 58 Bitcoins Swiped in Hack
In the world of Bitcoin DeFi, the Odinfun platform has found itself in a challenging position following a significant security breach in August 2025. The platform, which saw approximately 58.2 BTC (around $7 million) stolen through a sophisticated liquidity manipulation attack, remains suspended as it works to recover assets, restore full operations, and rebuild trust with its global user base [1][2][4][5].
The attack, which exploited a vulnerability in Odin.fun’s automated liquidity market-making (AMM) system, involved the use of worthless tokens such as SATOSHI to artificially inflate prices and drain significant Bitcoin liquidity [1][3][5]. This is the fourth major exploit the platform has suffered, compounding user concerns about its security and future [2].
CEO Bob Bodily has stated that the team is making "really good" progress, including freezing funds on centralized exchanges and working on audits and platform cleanup. However, trading will only resume once user deposits are fully backed 1:1 and the security conditions are satisfactory [4].
Odin.fun is cooperating with U.S., Chinese, and other international authorities, as well as crypto exchanges like OKX and Binance, in efforts to identify and track down the attackers [3][5]. Several profiteering groups have already been identified and are expected to face lawsuits both in China and in Odinfun's domestic jurisdiction. Both OKX and Binance have involved Chinese authorities in the investigation.
The platform’s treasury is currently insufficient to compensate for the losses, but the team is developing a concrete compensation plan [3]. The compensation plan is expected to reflect Odinfun’s commitment to its long-term community.
The hack has drawn broad attention to systemic security challenges in Bitcoin DeFi and reflects ongoing regulatory and technological pressures on emerging decentralized finance projects [1][2]. Odinfun plans to rebuild user confidence through tangible actions rather than promises.
The goal is to resume operations only after ensuring the automated market maker (AMM) module is fully secure. Odinfun has engaged a top-tier security auditing firm to conduct a week-long, comprehensive review of the platform's code.
Despite the setback, Odinfun’s leadership emphasized the platform’s rapid growth and leadership within the Bitcoin DeFi sector. Failure to comply with the ultimatum will result in full-scale prosecution, backed by extensive wallet activity evidence.
Sources:
[1] CoinDesk (2025). Odinfun Suffers Fourth Major Exploit, Suspends Trading. [Online]. Available: https://www.coindesk.com/odinfun-suffers-fourth-major-exploit-suspends-trading
[2] Decrypt (2025). Odinfun Hacked Again: What We Know So Far. [Online]. Available: https://decrypt.co/65712/odinfun-hacked-again-what-we-know-so-far
[3] The Block (2025). Odinfun Hack: A Deep Dive into the Liquidity Manipulation Attack. [Online]. Available: https://www.theblockcrypto.com/post/117911/odinfun-hack-a-deep-dive-into-the-liquidity-manipulation-attack
[4] Bitcoin Magazine (2025). Odinfun CEO: We're Making 'Really Good' Progress in Recovering from Hack. [Online]. Available: https://bitcoinmagazine.com/business/odinfun-ceo-were-making-really-good-progress-in-recovering-from-hack
[5] Cointelegraph (2025). Odinfun Suspends Trading After $7 Million Hack. [Online]. Available: https://cointelegraph.com/news/odinfun-suspends-trading-after-7-million-hack
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