Odin.fun struggles to resume trading post-hack

Bitcoin-based meme platform Odin.fun is still unable to set a date for resuming trading activity after last month’s $7 million exploit, according to the latest update from CEO Bob Bodily.

In a post on X on August 19, Bodily said the team had made “really good” progress across multiple fronts, including frozen funds, external audits and platform cleanup.

However, he added that trading will only restart once the following three key conditions are met:

• Verification of user balances
• Audit completion
• Removal of illegitimate trading activity

Frozen funds and ongoing investigations

Bodily confirmed that “funds have been frozen in various CEXs/tokens” and that Odin.fun is working with authorities to track down individuals tied to the exploit and recover user assets. The project is also partnering with undisclosed firms to ensure that when trading resumes, user deposits are backed 1:1 on the platform.

“We’re working with a few partners to ensure user funds are backed 1:1 in the platform prior to reopening trading. We’re hoping this is finalized in the next few days,” Bodily wrote.

The latest update follows earlier reports that attackers drained 58.2 BTC (worth about $7 million) from Odin.fun by exploiting a flaw in its liquidity AMM mechanism. The exploit was first called out by a member of the Odin.fun community via an X post.

Bodily confirmed the incident, announcing the suspension of deposits and halt trading as of August 12.

In a later post, Bodily stated that malicious users with links to groups in China were behind the exploit, adding that they are working with US law enforcement. He also said that Binance and OKX are helping with the investigation on the Chinese front, along with the relevant authorities.

Odin.fun hack audit close to completion

Another focus of the recovery process is a comprehensive security audit. Bodily said the team was “really close to finishing audit fixes,” after which the updated code will be resubmitted to the auditor. The final report will be made public before any trading resumes.

This is consistent with Odin.fun’s earlier commitments to transparency.

The team is also in the process of cleaning up the trading history. According to Bodily, Odin.fun is working to “remove illegitimate trading while maintaining legitimate user trading,” an attempt to isolate fraudulent transactions linked to the exploit without erasing genuine activity.

Still, the timeline for completion remains uncertain as Bodily said, “We still aren’t exactly sure when we can resume trading,” pointing to the need to finalize user balances, audit results and platform cleanup first.

A promise to bounce back

Despite the prolonged freeze, the Odin.fun community has remained supportive. Bodily praised creators, developers, and users across multiple crypto ecosystems who have offered help.

“I know it sounds cliché, but I have no doubt Odin.fun is going to come back stronger than ever,” he wrote.

The incident has drawn wider attention in Bitcoin DeFi circles, given that Odin.fun positioned itself as a novel experiment at the intersection of memes and decentralized finance. Its growth prior to the exploit highlighted both the appetite for innovation on Bitcoin rails and the persistent security risks faced by emerging protocols.

If you’re reading this, you’re already ahead. Stay there with our newsletter.