- Earlier today, Peckshield shared about the Odin.fun over $7 million exploit that happened through a liquidity manipulation scheme.
- The co-founder of the platform has come out to share more details on the platform and the way forward for users affected.
A few hours ago, an on-chain report came in regarding the hack of the well-known Bitcoin memecoin launching platform Odinfun. The hack caused the platform to lose about 58.2 BTC, which is worth about $7 million.
How The Bitcoin Memecoin Platform Hack Happened
During the early hours of today, Peckshield, a blockchain-based platform that flags blockchain platform hacks and exploits, shared a post on X about the hack of Odin.fun. According to the details shared, the hacker first found the vulnerabilities in the platform system and then proceeded to extract Bitcoin without giving back the paired tokens they had initially provided.
Basically, the attackers carried out a liquidity manipulation scheme where they introduced new tokens like SATOSHI into the platform system, then afterwards, they pushed up the value of the token artificially, and then proceeded to remove their liquidity to collect Bitcoin in return. After they did this, they managed to remove about 58.2 BTC, causing the platform’s total Bitcoin to go from 291 BTC to 232.8 BTC in less than two hours.
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Source: Peckshield (X)
The Platform Response to the Hack
After the platform confirmed the hack, the co-founder, Bob Bodily, announced that the platform had suspended both trading and withdrawals to stop any further damage. He identified that the major cause of the “vulnerability” came from the automated market-making mechanism, which had been introduced during a recent platform update.
Through this means, the attackers were able to exploit the liquidity pools and drain money quickly. Bodily also confirmed that multiple malicious actors were involved, many of whom were linked to groups based in China.
Eight hours after the attack, Bodily stated that the team was still working to calculate the full amount of Bitcoin lost. He admitted that the company’s treasury did not have the capacity to fully cover the stolen funds but assured users that whatever remained in the platform was secure.
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