Echo Protocol suffered an exploit on Monad, with an attacker minting 1,000 eBTC worth roughly $76.64 million.
Curvance paused the affected market while Echo Protocol suspended all cross-chain transactions. The incident raised May’s running tally of crypto hacks to 14.
How the Echo Protocol Exploit Unfolded
On-chain analyst dcfgod first flagged the incident. PeckShield mapped the laundering path. The attacker minted 1,000 eBTC.
The exploiter deposited 45 eBTC worth $3.45 million into Curvance, borrowed 11.29 wrapped Bitcoin (WBTC), bridged the assets to Ethereum, and swapped them for Ethereum (ETH).
The wallet then sent 384 ETH to Tornado Cash. Curvance posted a status update on X about the situation.
“At approximately 6:00 PM EST, we were made aware of an anomaly detected in the Echo eBTC market on Curvance. At this time, there is no indication of any compromise with Curvance’s smart contracts. Due to Curvance’s fully isolated market architecture, no other markets are impacted. Out of an abundance of caution, the affected market has been paused while our team actively investigates the situation alongside ecosystem partners,” the post read.
Echo Protocol also confirmed the incident on X and suspended all cross-chain transactions while it investigates. The team said it would post updates through its official channels.
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In addition, Monad CEO Keone Hon clarified that the breach did not impact the Monad network.
“Security researchers in their review have determined that ~$816,000 appears to have been stolen as a result of this exploit of@EchoProtocol’s eBTC,” Hon said.
The Echo Protocol exploit is the third major DeFi hack in five days. THORChain confirmed a vault breach on May 15 that drained more than $10 million.
Three days later, security researchers flagged an exploit of the Verus-Ethereum Bridge, in which attackers drained roughly $11.58 million in digital assets. The string of breaches highlights ongoing security risks across the decentralized finance (DeFi) sector.
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Read the Original story Echo Protocol Joins THORChain, Verus as May Hack Count Reaches 14 by Kamina Bashir at beincrypto.com