Recent Cybersecurity Incident
In a recent incident reported by the cybersecurity company PeckShield, $7 million in Bitcoin (BTC) was siphoned off from the meme-coin launchpad known as ODIN•FUN. This exploit occurred when cybercriminals deposited the Satoshi Nakamoto (SATOSHI) meme token into a liquidity pool and then artificially boosted the token’s value. After creating an illusion of worth, the perpetrators withdrew $7 million worth of BTC, leaving other investors unable to access their funds since the pool had been drained.
Response from ODIN•FUN
In response to the exploit, ODIN•FUN has halted Automated Market Maker (AMM) trading to avoid further complications. CEO Bob Bodily stated that the platform is currently undertaking a comprehensive security audit with a reputable auditing firm, a process that may take up to a week before operations can resume. Additionally, the team has reached out to law enforcement agencies and major cryptocurrency exchanges like Binance for assistance.
ODIN•FUN claims that several groups based in China have benefited from this exploit, and the platform intends to take legal action against these individuals. Bodily emphasized the urgency for those involved in the exploit to return the stolen funds, stating:
“You have a short window to return the funds before it is too late. This is not a negotiation.”
Increasing Frequency of Exploits
Unfortunately, such schemes are increasingly common in the crypto space. Earlier this year, for instance, the Inverse Finance (INV) token was manipulated on SushiSwap, resulting in an attacker borrowing nearly $16 million using inflated INV collateral. In another incident, the 0VIX lending platform on Polygon suffered losses of around $2 million after a similar price manipulation of the vGHST token. Additionally, Venus Protocol faced a loss of $700,000 due to a “donation attack” involving overvalued wUSDM stablecoin tokens used as collateral. Recently, Cetus Protocol, a notable decentralized exchange on the Sui blockchain, experienced a staggering $250 million loss linked to a library overflow bug.
The growing number of such attacks raises concerns regarding the security protocols in place for decentralized finance (DeFi) projects and highlights the risks inherent in the crypto market.
