The crypto market faced another shock on Monday after the Echo protocol exploit drained hundreds of thousands of dollars from the Bitcoin-focused DeFi platform. The attack once again showed how fragile decentralized finance systems can become when smart contract vulnerabilities remain hidden.
The exploit first came to light after crypto influencer DCF GOD posted warnings on X. Soon after, blockchain analytics accounts tracked suspicious transactions tied to Echo Protocol’s eBTC token on Monad.
According to on-chain data, the attacker minted 1,000 eBTC tokens. The exploiter then deposited 45 eBTC into the lending platform Curvance as collateral. Using that collateral, the attacker borrowed around 11.29 WBTC, valued at nearly $867,700 during the attack.
The stolen WBTC was later bridged to Ethereum and converted into ETH. Reports showed that 385 ETH eventually moved into Tornado Cash, a crypto mixer often used to hide transaction trails.
Also Read: Ethereum Exploit: Verus-Ethereum Bridge Suffers $11.4 Million Hack
Echo Protocol Exploit Raises Fresh DeFi Concerns
The Echo protocol exploit has added more pressure on the DeFi sector, which is already dealing with rising security failures this year. Blockchain tracker Lookonchain reported that the attacker still controls 955 eBTC, worth roughly $73.2 million.
DefiPrime founder Nick Sawinyh noted that most of the fake supply remains untouched because Monad’s decentralized exchanges and lending markets lack enough liquidity to absorb the tokens.
Monad co-founder Keone Hon confirmed that investigators are reviewing the exploit. He also stressed that Monad’s network infrastructure itself was not compromised.
Curvance also responded quickly. The protocol said its isolated market structure helped prevent broader damage across other lending pools. As a precaution, the platform paused the affected Echo eBTC market.
Echo Protocol Exploit Joins Growing Attack List
The Echo protocol exploit is only the latest in a series of DeFi attacks this month. Data from DefiLlama showed there have already been 13 DeFi security breaches in May alone.
One of the biggest incidents before this attack involved the Verus Ethereum bridge exploit, which reportedly caused losses of around $11.6 million.
Echo Protocol built its reputation as a multi-chain BTCFi platform with strong activity on Aptos. Now, the platform faces growing scrutiny as users wait for answers about the root cause of the exploit and whether the stolen funds can ever be recovered.
Also Read: THORChain Hack Drains $10M+ as RUNE Drops 10%: ZachXBT
