Users of the Bitcoin-based memecoin launchpad Odin.fun are panicking after a sudden drop in platform deposits raised concerns about a potential security breach. Within less than two hours, the platform’s Bitcoin deposits reportedly fell by nearly 20%, from 291 BTC to 232.8 BTC, a loss of approximately 58.2 BTC. An X user identified as @web3xiaoba flagged the unusual activity and linked two addresses suspected of being involved in the transactions. The account suggested the exploit involved manipulating liquidity pools to drain BTC without leaving paired assets behind [1].
In response, Odin.fun founder Bob Bodily confirmed on X that the platform had paused all trading and withdrawals to investigate the unauthorized movements. “We’re looking deeper into the recent withdrawals from the platform, so we’ve paused trading to ensure we can protect user funds,” he wrote, adding that users would be updated as the investigation progresses [1].
This is not the first time the platform has faced a crisis. In April 2025, Bodily’s account was reportedly compromised, leading to unauthorized asset clearance and prompting another suspension of trading. The incident caused the platform’s token, ODINDOG, to drop by about 40%, with ripple effects on other tokens hosted on Odin.fun. The event also divided the community, with some expressing empathy and others questioning the founder’s claims [1].
Following the earlier breach, members of the Internet Computer (ICP) developer community pointed to a flaw in the “Sign-In With Bitcoin” (SIWB) canister, which failed to verify that a public key matched the associated Bitcoin address. This allowed attackers to impersonate users by replaying signed messages. While the vulnerability was patched, it remained unclear whether Odin.fun applied the fix before re-enabling sensitive actions like withdrawals [1].
The current situation has again fractured the user community, with some users expressing doubts about the transparency of the response and others blaming the founder for recurring issues. The lack of a clear timeline for resuming withdrawals and trading has left users in uncertainty, with many fearing significant losses [1].
The incident highlights the fragility of trust in the memecoin sector, a volatile segment of the crypto market often driven by speculation. Platforms like Odin.fun, which operate similarly to Solana’s Pump.fun and Tron’s SunPump, depend heavily on community engagement and rapid token launches. Security failures in such an environment can be particularly damaging, as seen in the case of Four.Meme, another meme-token launchpad that suffered a similar breach, wiping out millions in user funds and irreparably harming its reputation [1].
For Odin.fun, rebuilding trust will require more than just restoring service. Stronger authentication protocols, transparent communication, and a clear timeline for resolving the issue will be essential to retaining user confidence. In the absence of these measures, the platform risks losing its position in a competitive and highly speculative market [1].
Source: [1] Odin.fun users panic as suspicious withdrawals drain … (https://www.mitrade.com/insights/news/live-news/article-3-1033975-20250813)
