Echo Protocol was exploited on Monad this week, with an attacker minting 1,000 eBTC initially valued at roughly $76.64 million. But Monad CEO Keone Hon said the actual theft came to about $816,000 – a sharp discrepancy that highlights how DeFi exploits can look far worse than the final damage. The incident marks the third major DeFi hack in five days, pushing May's running tally of crypto hacks to 14.
The minted vs. stolen gap
On-chain analyst dcfgod first flagged the exploit. Security firm PeckShield later mapped the laundering path. Hon took to social media to clarify that the Monad network itself was not compromised, and that the $76.64 million figure represented tokens minted, not assets drained. The attacker managed to extract only about $816,000 in value from the protocol, according to Hon's assessment.
How the attacker moved the funds
The exploiter deposited 45 eBTC – worth $3.45 million at the time – into Curvance, a lending platform. From there they borrowed 11.29 wrapped Bitcoin (WBTC), bridged the assets to Ethereum, swapped them for ETH, and finally sent 384 ETH to Tornado Cash, a crypto mixer. Curvance paused the affected Echo eBTC market out of caution, stating that its smart contracts were not compromised and that no other markets were impacted due to its isolated market architecture.
A brutal week for DeFi security
The Echo incident follows two other large exploits this week. On May 15, THORChain confirmed a vault breach that drained more than $10 million. On May 18, the Verus-Ethereum Bridge was exploited, with attackers taking roughly $11.58 million in digital assets. Three hacks in five days have put the sector on edge, and May's running tally now sits at 14 security incidents, according to public reports.
Echo Protocol suspended all cross-chain transactions while it investigates. The protocol has not announced a timeline for resuming operations or said whether it plans to compensate affected users. With the attacker's funds now mixed through Tornado Cash, recovery looks unlikely. The broader question — how a mint of 1,000 eBTC could lead to only $816,000 in stolen value — remains unresolved, but the discrepancy shows the importance of distinguishing between inflated on-chain numbers and actual losses.
