Bitcoin DeFi Platform Echo Protocol Hit By $76M Monad Exploit
-
Bitcoin DeFi Platform Echo Protocol Hit By $76M Monad Exploit
Putiatin said centralized and off-chain components of DeFi protocols have historically been "treated as secondary risk areas," but expects that to shift.
"We'll likely see far more focus on operational infrastructure, key management, and internal security frameworks, similar to how smart contract audits became standard after the 2021 exploit cycle," he said.
Precautionary measures
Echo has paused cross-chain functionality for the Monad deployment and completed an upgrade of the relevant Monad contracts "to restrict affected operations and strengthen control over sensitive functions."
The Aptos bridge has been fully paused as a precaution despite no observed impact, and Echo Aptos Lending has been suspended for security.
The team said it is also upgrading its EVM-series bridge deployments "to further strengthen cross-chain controls and reduce operational risk."
Attacks on DeFi
The Echo Protocol breach adds to mounting pressure on DeFi security after recent exploits at THORChain and TrustedVolumes, as well as last month's $293 million infrastructure-linked attack on KelpDAO, attributed to North Korea's Lazarus Group.
Echo said it is performing a comprehensive review of the affected Monad deployment and related bridge infrastructure, including admin key exposure, contract permissions, cross-chain controls, and minting controls, alongside ecosystem partners and external security reviewers.
This article has been published in decrypt.co via Yahoo News.
Bitcoin DeFi Platform Echo Protocol Hit By $76M Monad Exploit
Echo Protocol said that a compromised admin key had enabled unauthorized eBTC minting on its Monad deployment.
finance.yahoo.com
