Echo Protocol Exploited on Monad, $867K in WBTC Borrowed Through Compromised eBTC

According to Onchain Lens, the Bitcoin-focused DeFi protocol Echo suffered an exploit on Monday at 5:55 p.m. ET targeting its eBTC token on Monad. The attacker minted 1,000 eBTC and deposited 45 eBTC to lending protocol Curvance as collateral to borrow 11.29 WBTC, worth approximately $867,700. The exploiter then bridged the WBTC to Ethereum, swapped it into 385 ETH, and transferred the funds to crypto mixer Tornado Cash.

Monad Co-founder Keone Hon confirmed that approximately $816,000 was stolen in the exploit. Echo Protocol announced Tuesday morning that the attack originated from a compromised admin key affecting the Monad deployment. The protocol regained control of the keys and burned the remaining 955 eBTC held by the attacker. Curvance said its isolated market architecture prevented broader contagion and paused the affected eBTC market out of caution.