Echo DeFi Protocol Hit with Multi-Million Dollar Hacking Attack

The DeFi (Decentralized Finance) space has been hit with another major security breach, as Bitcoin-focused protocol Echo fell victim to a hacking attack on May 18. According to reports, an anonymous crypto influencer shared details of the incident on social media platform X, revealing that the attacker had exploited the protocol to mint a large amount of eBTC.

The attacker used the eBTC to deposit collateral on DeFi lending protocol Convergence and borrow approximately $867,700 worth of WBTC. The attacker then bridged the WBTC to Ethereum and exchanged it for ETH, before moving 385 ETH to crypto mixer Tornado Cash.

Monad and Convergence have confirmed the attack, with security researchers investigating the incident. Keone Hon, a co-founder of Monad, stated that about $816,000 was stolen in the attack, and that the network itself was not affected. Echo has since announced that the attack occurred after a service administrator key used on the Monad chain was stolen.