Echo Protocol Confirms Security Incident, Suspends Cross-Chain Transfers

According to Huo Xing Finance, Echo Protocol said on May 19 that it is investigating a security incident involving the Echo cross-chain bridge on Monad. The project has suspended all cross-chain transactions while the investigation is ongoing. Earlier, blockchain security firm PeckShield reported suspicious activity suggesting Echo Protocol on Monad had been exploited. The attacker allegedly minted 1,000 eBTC (about $76.7 million) and, using a previously tested method, deposited 45 eBTC (about $3.45 million) into Curvance. With that collateral, the attacker borrowed roughly 11.29 WBTC (about $867,700), bridged the WBTC to Ethereum, swapped it for ETH, and ultimately sent 384 ETH (about $821,700) to Tornado Cash. SlowMist founder Yu Xian said the loss may have been caused by the compromise of a single admin private key at Echo Protocol.