Echo Protocol Hack: $821K Stolen via Tornado Cash – DeFi Security in Chaos!

by

Echo Exploit Hacker Moves $821K Through Tornado After eBTC Mint

Show AI Summary
Echo Protocol’s bridge exploit may have long-term implications for cross-chain security in decentralized finance
The incident prompts a thorough review of bridge operations, with Echo suspending transactions until further notice
Blockchain investigators and security firms are working to contain damage and trace the stolen funds, estimated to be around $816,000

A recent hack caused concern in the cryptocurrency world when attackers exploited a weakness in Echo Protocol’s bridge on Monad, creating 1,000 fake eBTC. They then used this fraudulent eBTC as collateral on Curvance to borrow real WBTC, transferred the funds to Ethereum, and obscured 384 ETH using Tornado Cash, according to experts who track blockchain activity.

A recent event has brought renewed attention to the vulnerabilities of cross-chain bridges, which continue to be a major security concern for the decentralized finance (DeFi) space in 2026. The issue was initially highlighted by crypto trader DCF GOD on X.

Okay, so it looks like Echo Protocol on Monad might have been exploited. Someone managed to mint a thousand eBTC seemingly from nothing, then used it as collateral on Curvance to borrow a bunch of wrapped Bitcoin. They then bridged it and sent it through Tornado to hide the transaction. Definitely not a good sign!

— DCF GOD (@dcfgod) May 18, 2026

PeckShield, a blockchain security company, reported that the hacker made off with 384 ETH, worth about $821,700, by moving the funds through a specific process. The $76.7 million figure often reported isn’t the amount actually stolen, but a temporary value of the unauthorized creation of eBTC. Following the attack, Echo Protocol stopped activity between different blockchains, and Curvance temporarily shut down the affected lending platform to limit potential losses.

Keone Hon confirmed that the Monad blockchain wasn’t affected by the recent issue, continuing to function as usual. He also stated that security experts believe around $816,000 was taken during the exploit targeting Echo Protocol’s eBTC.

Just to be clear, the Monad network is working as usual and hasn’t been impacted. Security experts have found that about $816,000 was taken due to a security issue with eBTC from Echo Protocol.

— Keone Hon (@keoneHD) May 18, 2026

Echo and Curvance rush to contain damage

Curvance acted swiftly after noticing unusual borrowing on Echo Protocol’s eBTC market. They immediately paused the market and are collaborating with others in the crypto community to investigate what happened. According to Curvance, they first detected the problem around 6:00 PM EST.

Echo Protocol immediately stopped all transfers between different blockchains while they investigated a security issue. They’ve paused these “bridge” operations until the investigation is complete. Initial findings suggest the problem might be related to incorrect access permissions or a stolen administrative key, but Echo Protocol hasn’t yet determined the exact cause of the incident.

We’re looking into a security issue affecting the Echo bridge on Monad. As a precaution, all transactions moving between chains are temporarily paused while we investigate. We’ll share updates as soon as we have more information through our official channels.

— Echo Protocol (@EchoProtocol_) May 19, 2026

This attack revealed a common vulnerability in decentralized finance (DeFi). The attacker generated fake assets, used them to secure a loan of real funds, and quickly moved those funds across different blockchains before anyone could react. This incident once again demonstrated how rapidly funds can be withdrawn from DeFi platforms when trust is lost.

Bridge exploits continue to pressure DeFi

The recent Echo Protocol hack is the latest in a string of expensive security breaches hitting the crypto world this month. Just before this, THORChain announced a loss of over $10 million due to a similar attack. Around the same time, attackers managed to steal almost $11.58 million from the Verus-Ethereum bridge by exploiting a weakness in how it verifies transactions between different blockchains.

So far in 2026, hackers have stolen around $328.6 million in eight separate attacks targeting bridges – systems that connect different blockchains. The largest single attack happened in April against Kelp DAO, where nearly $292 million worth of rsETH was stolen from their systems.

Recent attacks have heightened worries about the security of systems that connect different blockchains. Many experts believe these connections remain a vulnerable part of the decentralized finance world.

Read More

2026-05-19 09:10