What Happened?

Hackers exploited a vulnerability in the liquidity system of Odin.fun, successfully stealing 58.2 BTC (approximately $7 million). The assailants manipulated token prices by injecting a worthless token similar to SATOSHI alongside BTC, resulting in an artificially inflated price ratio within a low liquidity environment.

Key Points

• The exploit involved sophisticated price manipulation, linked predominantly to Chinese hacker groups.
• Recovery efforts are ongoing with collaborations involving law enforcement and exchanges.
• The company plans to compensate those affected after conducting a security audit.

Incident Summary

The attack primarily targeted the automated liquidity market-making system at Odin.fun. Bob Bodily, co-founder of the platform, acknowledged the exposure of a critical vulnerability in their recent update. Following the attack, Odin.fun experienced a significant drop in bitcoin reserves, plummeting from 291 BTC to 232.8 BTC in less than two hours.

Bodily reported that the breach was first reported by a community member who noticed abnormal liquidity changes. Subsequently, immediate measures were taken to freeze suspect accounts.

Community Notification

In a statement on X, Bodily emphasized the coordinated nature of the attack, mentioning the involvement of multiple threat actors from China who exploited the platform’s weaknesses.

While the situation is alarming, Bodily confirmed that the remaining funds within Odin.fun are secure. However, he noted that the treasury may not be sufficient to cover losses fully, prompting a forthcoming “concrete plan” aimed at compensating affected users as they finalize audit details.

To date, Odin.fun has contacted U.S. authorities and is working with exchanges like Binance and OKX, hoping to track down and possibly freeze the illicitly obtained funds.