Bitcoin-focused DeFi protocol Echo suffered an exploit on Monday, with onchain analysts confirming approximately $816,000 stolen. The attack targeted Echo Protocol's eBTC token—a bitcoin liquidity token issued on Monad—and was first flagged by crypto influencer DCF GOD on X at around 5:55 p.m. ET Monday. While the root cause remains unidentified, the exploit marks the latest in a wave of DeFi attacks, with 13 security breaches affecting DeFi protocols in the month prior, including an $11.6 million exploit on Verus' Ethereum bridge on May 17.
## Attack Mechanism
According to onchain analytics firm Onchain Lens, the attacker minted 1,000 eBTC and deposited 45 eBTC to DeFi lending protocol Curvance as collateral. Using this collateral, the attacker borrowed approximately 11.29 WBTC, worth roughly $867,700 at the time of the exploit.
The exploiter then bridged the WBTC to Ethereum and swapped the tokens into ETH. The 385 ETH was subsequently moved to the crypto mixer Tornado Cash.
According to onchain analytics firm Lookonchain, the attacker still holds 955 eBTC, worth $73.2 million. DefiPrime Founder Nick Sawinyh noted that "the other 99% of the fake supply is parked on the attacker's wallet, because Monad's lending and DEX depth can't absorb more."
## Platform Responses
Monad Co-founder Keone Hon acknowledged the exploit and stated that security researchers are currently investigating the incident. Hon confirmed that "~$816,000 appears to have been stolen as a result of this exploit of [Echo Protocol's] eBTC" and assured that the Monad network itself is not affected.
Curvance confirmed that its fully isolated market architecture has shielded other markets from being affected, with no indication of compromise to its smart contracts. Curvance paused the affected Echo eBTC market out of caution.
## FAQ
What is eBTC?
eBTC is Echo Protocol's bitcoin liquidity token issued on the Monad blockchain. It is used as collateral in DeFi lending protocols like Curvance.
How much was stolen in the exploit?
Approximately $816,000 was confirmed stolen, according to Monad Co-founder Keone Hon. The attacker also holds 955 eBTC (worth $73.2 million) that remains in their wallet but cannot be liquidated due to insufficient liquidity on Monad's lending and decentralized exchange platforms.
Is the Monad network affected?
No. Monad Co-founder Keone Hon confirmed that the Monad network itself is not affected by the exploit. The attack specifically targeted Echo Protocol's eBTC token and the Curvance lending market.
