Bitcoin News Today: Hackers steal $7M from Odin.fun via AMM price manipulation glitch

Hackers exploited a vulnerability in the liquidity system of memecoin launchpad Odin.fun, stealing 58.2 BTC—valued at approximately $7 million—from the platform’s automated market-making (AMM) system. Attackers manipulated token prices by depositing a worthless token such as SATOSHI alongside BTC in the liquidity pool, artificially inflating the price ratio in a thin market [1]. They then withdrew liquidity to claim large amounts of BTC at the inflated rate, effectively draining the pool [2].

The attack occurred within two hours, during which the platform’s Bitcoin reserves dropped from 291 BTC to 232.8 BTC, as reported by blockchain data [3]. Co-founder Bob Bodily confirmed the breach, stating that the vulnerability was introduced in the platform’s latest update and was exploited by multiple malicious actors, many of whom were linked to groups in China [4]. Bodily emphasized that the stolen assets were drained through coordinated manipulation of the AMM’s internal price ratios, which are not tied to external market prices [5].

Odin.fun has suspended suspicious accounts and is working with a third-party security firm to conduct a full audit of the platform. Bodily indicated that the team is also in contact with U.S. law enforcement and is coordinating with exchanges such as Binance and OKX to track the stolen funds and potentially freeze them [6]. However, the platform’s treasury is insufficient to fully absorb the loss, and Bodily announced that a concrete plan to compensate affected users will be announced following the audit, which is expected to take up to a week [7].

Automated market makers are particularly vulnerable to such attacks when liquidity pools are shallow or poorly secured, as the price mechanism relies solely on internal supply ratios [8]. The incident highlights the growing risks in memecoin ecosystems, where thin markets and speculative tokens create opportunities for manipulation by well-resourced attackers.

Source:

[1] [2] [3] [4] [5] [6] [7] [8]

(https://www.coindesk.com/markets/2025/08/13/memecoin-launchpad-odin-fun-suffers-usd7m-liquidity-exploit)