Odin.fun’s $7M Liquidity Heist: Bitcoin Memecoin Launchpad Gets Rug-Pulled

Another day, another DeFi bloodbath—this time with a side of meme flavor.

The exploit: Bitcoin-based launchpad Odin.fun just got drained for $7 million in a classic liquidity attack. No fancy bridge hacks or zero-days here—just old-fashioned code vulnerabilities exploited while the team wasn't watching the barn door.

Why it stings: Platforms promising 'democratized memecoin launches' might want to prioritize security audits over viral marketing. But hey, at least the thieves have excellent taste in timing—right before the weekend crypto news lull.

The silver lining? Another masterclass in why you shouldn't ape into unaudited projects, even if they're riding Bitcoin's coattails. The crypto gods giveth volatility, and taketh away liquidity.

Legal action and security audit

Odin.fun has engaged a top-tier security firm for a week-long audit and contacted U.S. law enforcement, as well as exchanges OKX and Binance, which are assisting Chinese authorities in the investigation. Bodily has issued a direct warning to the attackers.

“You have a short window to return the funds before it is too late. This is not a negotiation. You have one chance to limit the consequences and avoid prosecution,” Bodily wrote.

Apologies for the delay in responding to today’s event. We know it’s been over 8 hours since the exploit and our silence has likely been frustrating for many of you. We wanted to speak sooner but needed time to verify the facts and take immediate action to protect user funds.…

The team claims to have gathered substantial evidence, including wallet activity linked to the exploit.

Community backlash and history of hacks

The exploit caused a 40% decline in ODINDOG, the native token of Odin.fun, raising concerns about the security of the platform. While some users praised the team’s openness, others pointed to persistent weaknesses, such as a $178,000 hack in April 2025 that was caused by errors in the “Sign-In With Bitcoin” authentication system. That earlier incident was reportedly patched.

This is Odin.fun’s fourth reported exploit, raising concerns among users about whether the platform can recover its reputation, despite its rapid growth in the bitcoin DeFi sector.

Crypto hack landscape

The incident comes amid a surge in DeFi-related exploits. As previously reported by crypto.news, there were 17 significant hacks in July 2025, resulting in losses of $142 million, a 27% increase from June. The majority of the stolen money was laundered through cross-chain bridges, which have replaced mixers as the main means of transferring illegal cryptocurrency.

Odin.fun has not provided a firm timeline for resuming operations but insists it is “here to stay” and is committed to rebuilding user trust.