Echo Protocol Suffers $76 Million Exploit After Unauthorized eBTC Minting Attack

Echo Protocol, a DeFi platform, has suffered a major exploit after hackers minted nearly $76 million worth of unauthorized eBTC tokens on the Monad blockchain. The incident adds to growing security concerns across the DeFi sector.

Echo Protocol Hack Triggered by Compromised Admin Key

The attack happened after a hacker gained access to a compromised admin key, allowing the minting of around 1,000 unauthorized eBTC worth nearly $77 million. According to blockchain security researcher PeckShield, the attacker quickly used part of the minted funds to borrow wrapped Bitcoin (WBTC) worth about $3.45 million through Curvance’s money market and reward system.

The stolen assets were later moved through Tornado Cash, a crypto mixer often used to hide transaction history.

Echo Protocol confirmed it regained control of the compromised admin keys and burned the remaining 955 eBTC still held by the attacker to prevent further damage.

Echo Protocol Suspends Cross-Chain Services After Attack

Following the exploit, Echo Protocol paused all cross-chain functions linked to its Monad deployment and upgraded the affected smart contracts to improve control over sensitive operations.

The company also paused bridge operations on the Aptos network, even though it said Aptos was not directly affected by the attack. Echo explained the move was taken as a safety measure while investigations continue.

Echo Protocol mainly offers users yield and liquidity on Bitcoin through synthetic assets such as eBTC and operates across multiple blockchain networks, including Aptos and Monad.