Bitcoin-focused DeFi protocol Echo suffered an exploit on Monday, marking the latest in a wave of DeFi attacks this year. The root cause of the exploit has yet to be identified.
The exploit was first flagged by pseudonymous crypto influencer DCF GOD on X at around 5:55 p.m. on Monday, ET. Other onchain analytics accounts on the social media platform have relayed the findings with additional details.
According to Onchain Lens, the attacker minted 1,000 eBTC — Echo Protocol's bitcoin liquidity token issued on Monad — and deposited 45 eBTC to DeFi lending protocol Curvance as collateral to borrow around 11.29 WBTC, worth roughly $867,700 at the time.
The exploiter then bridged the WBTC to Ethereum and swapped the tokens into ETH (ETH). The 385 ETH was moved to the crypto mixer Tornado Cash.
The attacker still holds 955 eBTC, worth $73,2 million, according to Lookonchain. "The other 99% of the fake supply is parked on the attacker's wallet, because Monad's lending and DEX depth can't absorb more," DefiPrime Founder Nick Sawinyh wrote in a post.
