A decentralized finance protocol on the Monad network, Echo Protocol, has suffered a security breach, resulting in the theft of approximately $816,000 worth of its eBTC token. The Bitcoin-focused DeFi project announced via social media that a vulnerability in its bridge was exploited, prompting an immediate suspension of all cross-chain transactions.
Blockchain analyst OnchainLens reported that the attacker minted 1,000 eBTC — the protocol’s liquidity token — on Monad and used it as collateral to borrow Wrapped Bitcoin (WBTC). The stolen WBTC was then bridged to Ethereum, swapped for ETH, and funnelled into the cryptocurrency mixer Tornado Cash.
Initial reports had suggested a far larger vulnerability of $76.7 million, but subsequent investigation by security researchers confirmed the actual loss at around $816,000 in eBTC. Monad co-founder Keone Hon moved quickly to reassure the community, stating that the Monad network itself was not compromised and continues to operate normally. “The incident was isolated to the EchoProtocol application layer and did not affect the underlying Monad infrastructure,” Hon said.
ECHO, the native token of Echo Protocol, is listed on Binance Alpha — Binance’s pre-listing pool — and saw an immediate price drop following news of the hack. While the exploit highlights persistent risks in DeFi applications, the resilience of the Monad network is being viewed as a positive signal for its broader ecosystem.
