How a Single Compromised Key Drained $816K From Echo Protocol on Monad

 On May 19, 2026, a DeFi protocol called Echo Protocol lost $816,000 on the Monad network after an attacker gained access to an admin key and used it to mint 1,000 eBTC from nothing.

The minted tokens had a nominal value of $76.7 million. But the attacker did not try to cash out the full amount. Instead, they deposited 45 eBTC as collateral on Curvance, borrowed approximately 11.29 WBTC, bridged those funds to Ethereum, swapped them into ETH, and routed 385 ETH through Tornado Cash. The laundering path was completed before most users knew anything had happened.

On-chain researcher dcfgod flagged the incident first on X, pointing to a MonadScan transaction showing the attacker's wallet receiving 1,000 eBTC in a single transaction. Blockchain developer Marioo later broke down the specific gaps that made it possible: a single-signature admin role, no timelock, no minting cap, and no collateral verification check on Curvance for newly issued eBTC.

Echo Protocol confirmed the breach in an official statement posted to X, attributing it to a compromised admin key on the Monad deployment. The protocol said it had regained control of that key and burned 955 eBTC that remained in the attacker's possession. Cross-chain operations were suspended on both Monad and Aptos, even though no compromise was found on the Aptos side.

Monad CEO Keone Hon confirmed the Monad network itself was not affected and continued operating normally throughout the incident.

The incident is now one of three major DeFi exploits in a five-day stretch. THORChain and the Verus-Ethereum Bridge were hit in the same window, with combined losses exceeding $21 million across all three.

For a full breakdown of the attack path, the on-chain evidence, and what Echo's investigation has found so far, read the complete report at CryptoNewsLive.org.

CryptoNewsLive.org covers DeFi security incidents, on-chain data, and crypto market developments with sourced, verified reporting updated as stories develop.

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