ECHO Token Crashes Double Digits After Massive Echo Protocol Exploit
TL;DR
Echo Protocol suffered a significant exploit on Monday, leading to a crash of the ECHO token by double digits. The attacker minted 1,000 eBTC, valued at approximately $76.7 million, before executing a series of transactions to launder the funds.
Key points
- Echo Protocol was exploited on Monday
- The attacker minted 1,000 eBTC worth about $76.7 million
- Exploiter used Curvance for collateral and borrowed WBTC
- Stolen funds were converted to ETH and sent to Tornado Cash
Bitcoin-focused DeFi protocol Echo Protocol was exploited on Monday in the latest security breach to hit the DeFi sector this month. The attack was first flagged by pseudonymous crypto influencer DCF GOD on X at around 5:55 p.m. ET.
The exact cause of the incident has not yet been identified.
Echo Protocol Exploit
Findings by Onchain Labs reveal that the attacker allegedly minted 1,000 eBTC worth about $76.7 million and then used what was described as a previously tested exploit route involving Curvance. The exploiter reportedly deposited 45 eBTC, roughly worth $3.45 million, into Curvance as collateral before borrowing around 11.29 WBTC worth about $867,700.
The borrowed WBTC was then bridged to Ethereum, swapped into ETH, and 385 ETH, which is valued at around $818,000, was later sent to Tornado Cash.
Keone Hon, co-founder of Monad, later clarified that the Monad network itself was not impacted and continues to operate normally. Additionally, Curvance also stated that its smart contracts showed no signs of compromise and explained,
“Due to Curvance’s fully isolated market architecture, no other markets are impacted. Out of an abundance of caution, the affected market has been paused while our team actively investigates the situation alongside ecosystem partners.”
The hacker still holds approximately 955 eBTC worth more than $73 million, according to data shared by blockchain tracker Lookonchain. Meanwhile, Echo Protocol confirmed that they are currently investigating the security incident and have suspended all cross-chain transactions.
ECHO Token Drops 12%
Following news of the exploit, ECHO came under heavy selling pressure and fell more than 12%. At the time of writing, the token was trading near $0.0049.
The Echo exploit followed two other major crypto hacks within four days, including attacks on THORChain with stolen funds of more than $10 million and the Verus-Ethereum Bridge, which saw $11.5 million being stolen. Overall, the Echo exploit has pushed the total number of security breaches recorded in May to 14.
Q&A
What caused the Echo Protocol exploit?
The exact cause of the Echo Protocol exploit has not yet been identified, but it involved a previously tested exploit route.
How much was stolen in the Echo Protocol attack?
The attacker allegedly minted 1,000 eBTC worth about $76.7 million during the exploit.
What happened to the stolen funds from the Echo Protocol exploit?
The stolen funds were used to borrow WBTC, which was then bridged to Ethereum and converted into ETH, with a portion sent to Tornado Cash.
