Echo Protocol, a DeFi platform built around Bitcoin, experienced a security issue on Monday, becoming the latest in a string of recent attacks on the DeFi space. The problem was first noticed and reported by a crypto personality known as DCF GOD on X (formerly Twitter) around 5:55 p.m. Eastern Time.
The exact cause of the incident has not yet been identified.
Echo Protocol Exploit
According to research from Onchain Labs, the attacker created 1,000 eBTC, valued at approximately $76.7 million, and then used a known method to exploit a vulnerability involving Curvance. They initially deposited 45 eBTC (around $3.45 million) into Curvance as collateral and then borrowed approximately 11.29 WBTC, worth about $867,700.
The stolen WBTC was transferred to the Ethereum blockchain, converted to ETH, and then approximately $818,000 worth of ETH (about 385 ETH) was sent to Tornado Cash.
Keone Hon, who co-founded Monad, explained that the Monad network wasn’t affected by the issue and is still running as usual. Curvance also confirmed that their smart contracts appeared secure and provided further details.
As a researcher, I can share that because of Curvance’s unique and separate market design, this issue hasn’t affected any other areas of the platform. We’ve temporarily paused trading on the impacted market as a precaution, and my team is working hard to investigate what happened, collaborating with our partners in the ecosystem to resolve it quickly.
Blockchain data from Lookonchain shows the hacker still possesses around 955 eBTC, valued at over $73 million. Echo Protocol has confirmed they are investigating the breach and have temporarily stopped all transactions between different blockchains.
ECHO Token Drops 12%
After the news about the exploit broke, I watched ECHO’s price really take a hit – it dropped over 12%! Right now, it’s hovering around $0.0049, which is definitely concerning.
The recent Echo hack is the third major cryptocurrency security incident in just four days. Earlier attacks targeted THORChain, resulting in over $10 million in losses, and the Verus-Ethereum Bridge, where $11.5 million was stolen. With the Echo exploit, May has now seen a total of 14 recorded security breaches.
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2026-05-19 09:05