Catenaa, Monday, May 25, 2026- Bitcoin-focused decentralized finance platform Echo suffered an exploit targeting its eBTC market on the Monad blockchain, with attackers minting fake tokens and extracting crypto assets worth about $816,000, according to blockchain investigators and protocol developers.
The exploit was first flagged Monday by crypto analyst DCF GOD on X. Onchain analysts said the attacker minted 1,000 fake eBTC tokens, Echo’s bitcoin liquidity asset on Monad, before depositing 45 eBTC into lending protocol Curvance as collateral.
The attacker then borrowed about 11.29 wrapped bitcoin valued near $867,700 before bridging the funds to Ethereum and converting them into ether. Investigators said 385 ETH was later transferred through crypto mixer Tornado Cash.
Blockchain tracker Lookonchain reported the attacker still holds 955 eBTC worth more than $73 million. Analysts said most of the fake supply remains idle because Monad’s decentralized exchange and lending liquidity could not absorb larger withdrawals.
Monad co-founder Keone Hon said security researchers determined the network itself was not compromised and that the exploit appeared isolated to Echo’s eBTC system.
Meanwhile, Curvance said its isolated market architecture protected other lending markets from contagion. The platform paused the affected Echo eBTC market as a precaution.
Echo Protocol operates as a multichain bitcoin liquidity and yield platform with strong activity on Aptos and Monad-linked ecosystems.
The exploit adds to a growing list of decentralized finance security breaches this month. Blockchain analytics platform DefiLlama recorded at least 13 DeFi-related exploits in May alone, including a recent $11.6 million attack on Verus’ Ethereum bridge. Security researchers continue investigating the root cause of the Echo exploit.
