Invest ideasNews
19 May 2026, 06:57
How did an attacker mint 1,000 unauthorised eBTC on Echo Protocol?
Bitcoin-focused DeFi platform Echo Protocol has suffered an exploit after an attacker minted roughly 1,000 unauthorised eBTC tokens on the protocol’s Monad deployment. According to blockchain security firm PeckShield and on-chain analytics platform Lookonchain, the attacker created around $76.7 million worth of synthetic Bitcoin tokens before attempting to extract value through decentralised lending markets. Echo Protocol later confirmed that it was investigating “a security incident impacting the Echo bridge on Monad,” while also stating that all cross-chain transactions had been suspended during the investigation. https://twitter.com/EchoProtocol_/status/2056561412554870810?s=20 Monad co-founder Keone Hon has clarified on X that the Monad network itself was operating normally and had not been compromised. Security researchers and blockchain developers later narrowed the incident down to what developer “Marioo” described as an operational failure tied to compromised admin credentials rather than a flaw in the smart contract code itself. According to the developer, the eBTC contract functioned as intended, but weak access control measures allowed the attacker to take over administrative permissions. How the exploit unfolded On-chain investigators said the attacker first assigned themselves the DEFAULT_ADMIN_ROLE on Echo’s eBTC contract before granting their wallet the MINTER_ROLE, which enabled the creation of new tokens without backing. After securing minting privileges, the attacker reportedly removed their own admin permissions to avoid retaining a visible administrative role on-chain. With those controls in place, the exploiter minted 1,000 eBTC tokens worth approximately $77 million on paper. Limited liquidity across the Monad ecosystem, however, prevented the attacker from converting most of the assets directly through decentralised exchanges. Instead, data shared by Onchain Lens and Lookonchain showed the attacker deposited 45 eBTC, valued at roughly $3.5 million, into DeFi lending protocol Curvance as collateral. Against those deposits, the attacker borrowed approximately 11.29 wrapped Bitcoin (WBTC) worth about $867,700. After bridging the borrowed WBTC to Ethereum, the exploiter swapped the assets into ETH and transferred roughly 384 to 385 ETH into crypto mixer Tornado Cash, according to multiple on-chain tracking accounts. Lookonchain and DeBank data indicated that the attacker still controls 955 eBTC worth around $73 million, though DefiPrime founder Nick Sawinyh said in a post that the remaining tokens were effectively unusable because Monad’s DeFi liquidity depth could not absorb the fake supply. Marioo also pointed to several security weaknesses that amplified the attack’s impact, including the use of a single-signature admin role, the absence of a timelock mechanism, no minting cap or rate limiter, and a lack of collateral sanity checks on Curvance for newly minted eBTC. Protocols move to contain damage As the exploit unfolded, Curvance said it detected an “anomaly” in the Echo eBTC market and paused the affected lending market while investigations continued. The protocol stated there was no indication that its own smart contracts had been breached, adding that its isolated market architecture prevented spillover into other lending pools. According to Hon, security researchers estimated realised losses at roughly $816,000, substantially below the paper value of the unauthorised mint because most of the fake eBTC supply could not be liquidated. Echo Protocol, which focuses on Bitcoin liquidity aggregation, liquid staking, restaking, and yield generation across multiple chains, has yet to disclose how the admin credentials were compromised. The protocol said further updates would be shared through official channels as the investigation progresses. The incident has added to a growing list of DeFi exploits recorded since the start of the year. As previously reported by Invezz , KelpDAO bridge infrastructure was compromised in an advanced RPC poisoning and distributed denial-of-service (DDoS) attack that resulted in a massive $292 million exploit. The post How did an attacker mint 1,000 unauthorised eBTC on Echo Protocol? appeared first on Invezz
19 May 2026, 06:03
ECHO Token Crashes Double Digits After Massive Echo Protocol Exploit
Bitcoin-focused DeFi protocol Echo Protocol was exploited on Monday in the latest security breach to hit the DeFi sector this month. The attack was first flagged by pseudonymous crypto influencer DCF GOD on X at around 5:55 p.m. ET. The exact cause of the incident has not yet been identified. Echo Protocol Exploit Findings by Onchain Labs reveal that the attacker allegedly minted 1,000 eBTC worth about $76.7 million and then used what was described as a previously tested exploit route involving Curvance. The exploiter reportedly deposited 45 eBTC, roughly worth $3.45 million, into Curvance as collateral before borrowing around 11.29 WBTC worth about $867,700. The borrowed WBTC was then bridged to Ethereum, swapped into ETH, and 385 ETH, which is valued at around $818,000, was later sent to Tornado Cash. Keone Hon, co-founder of Monad, later clarified that the Monad network itself was not impacted and continues to operate normally. Additionally, Curvance also stated that its smart contracts showed no signs of compromise and explained, “Due to Curvance’s fully isolated market architecture, no other markets are impacted. Out of an abundance of caution, the affected market has been paused while our team actively investigates the situation alongside ecosystem partners.” The hacker still holds approximately 955 eBTC worth more than $73 million, according to data shared by blockchain tracker Lookonchain. Meanwhile, Echo Protocol confirmed that they are currently investigating the security incident and have suspended all cross-chain transactions. ECHO Token Drops 12% Following news of the exploit, ECHO came under heavy selling pressure and fell more than 12%. At the time of writing, the token was trading near $0.0049. The Echo exploit followed two other major crypto hacks within four days, including attacks on THORChain with stolen funds of more than $10 million and the Verus-Ethereum Bridge, which saw $11.5 million being stolen. Overall, the Echo exploit has pushed the total number of security breaches recorded in May to 14. The post ECHO Token Crashes Double Digits After Massive Echo Protocol Exploit appeared first on CryptoPotato .
19 May 2026, 06:00
Echo Protocol Hit by $76M eBTC Minting Exploit
The attacker moved part of the funds through Curvance, bridged assets to Ethereum, and sent some ETH through Tornado Cash. Security researchers believe the incident was caused by a compromised admin private key rather than a smart contract flaw. Hacker Exploits Echo Protocol Echo Protocol suffered a major security breach after an attacker minted approximately 1,000 unauthorized eBTC tokens on the protocol, which operates on the Monad blockchain. The exploit resulted in roughly $76.7 million worth of synthetic Bitcoin being created without authorization. Because of this, it is one of the latest large-scale attacks to hit the decentralized finance sector during an already difficult month for crypto security. Blockchain security firms PeckShield and Lookonchain both reported the incident on Tuesday, while Echo Protocol later confirmed that it was investigating a security issue affecting its bridge infrastructure. The protocol also announced that all cross-chain transactions were suspended while the investigation continued. The attacker quickly began moving portions of the stolen assets through decentralized finance platforms in an attempt to launder the funds. According to PeckShield, the hacker deposited 45 eBTC, valued at around $3.45 million, into Curvance, a DeFi lending and liquidity management platform. The attacker then borrowed approximately 11.3 wrapped Bitcoin worth about $868,000 against the collateral before bridging the assets to Ethereum. After transferring the funds to Ethereum, the attacker swapped the assets into ETH and eventually sent around 384 ETH, valued at roughly $822,000, through Tornado Cash. Despite these movements, the majority of the stolen assets are still untouched. Data from DeBank indicates that the attacker still controls approximately 955 eBTC, which is close to 95% of the stolen cryptocurrency and worth around $73 million. Blockchain developer Marioo suggested that the exploit was not caused by a flaw in Echo Protocol’s smart contracts. Instead, the incident appears to have stemmed from an admin private key compromise. According to the developer, the problem was operational rather than technical, with the eBTC contract functioning as intended. Several security weaknesses may have contributed to the scale of the exploit, including reliance on a single-signature admin role, the absence of a timelock mechanism, no minting supply cap or rate limit, and a lack of supply validation checks for newly minted collateral on Curvance. Curvance stated that its own smart contracts were not compromised but confirmed that it paused the affected eBTC market while investigations continue. Monad co-founder Keone Hon also clarified that the Monad blockchain itself is unaffected and is operating normally. The Echo Protocol exploit adds to a growing list of recent DeFi attacks, joining incidents involving THORChain, Verus Protocol’s Ethereum bridge, Transit Finance, TrustedVolumes, and Ekubo.
19 May 2026, 04:50
Alchemix Completes Cross-Chain Bridge Upgrade to V3, Onboards Deutsche Telekom as Validator
BitcoinWorld Alchemix Completes Cross-Chain Bridge Upgrade to V3, Onboards Deutsche Telekom as Validator Alchemix, the decentralized finance protocol known for its self-repaying loans, has officially completed a major upgrade to its cross-chain bridge infrastructure. The project has shut down its legacy bridges on Optimism and Arbitrum, transitioning fully to a V3 architecture designed to improve both security and operational efficiency, according to an Odaily report. Legacy Bridges Retired, New Architecture Goes Live The older alUSD and alETH bridges on Optimism and Arbitrum have been discontinued as part of the transition. In their place, Alchemix has introduced a bridge system built around its V3 Alchemist, which consolidates and streamlines cross-chain operations. The move is part of a broader effort to modernize the protocol’s infrastructure and reduce potential attack surfaces. As part of the update, Alchemix has revised its cross-chain transaction verification settings, known as DVN (Decentralized Verifier Network) configurations. The protocol retains a 2/3 multi-signature confirmation mechanism, a common security practice in DeFi that requires approval from multiple parties before transactions are finalized. Deutsche Telekom Joins as Verification Provider In a notable addition, Alchemix has onboarded Deutsche Telekom, the German telecommunications giant, as a new verification service provider. This partnership brings a traditional enterprise player into the DeFi verification layer, potentially enhancing the credibility and robustness of the bridge’s security model. Why This Matters for Alchemix Users For users holding alUSD or alETH on Optimism or Arbitrum, the transition means that older bridge routes are no longer operational. Funds should be moved or managed through the new V3-compatible infrastructure. The upgrade is designed to reduce latency and improve trust assumptions by involving a diversified set of validators, including a major corporate entity. The inclusion of Deutsche Telekom is particularly significant, as it marks one of the first instances of a major telecommunications firm directly participating in DeFi infrastructure security. This could set a precedent for other protocols seeking to bridge traditional corporate trust with decentralized systems. Conclusion Alchemix’s V3 bridge upgrade represents a meaningful step forward in the protocol’s evolution, addressing both security and efficiency concerns while bringing in a well-known corporate validator. Users should ensure they are interacting with the updated bridge contracts to avoid transaction failures or loss of access. The move also signals a growing trend of traditional enterprises entering the DeFi security landscape. FAQs Q1: What happened to the old Alchemix bridges on Optimism and Arbitrum? The legacy alUSD and alETH bridges have been shut down. Users must now use the new V3-compatible bridge infrastructure for cross-chain transactions. Q2: Why did Alchemix add Deutsche Telekom as a verification provider? Deutsche Telekom joins as a DVN provider to enhance the security and decentralization of the bridge’s verification process, adding a trusted corporate entity to the validator set. Q3: Is the 2/3 multi-signature mechanism still in place? Yes, Alchemix continues to use a 2/3 multi-signature confirmation mechanism for cross-chain transactions, requiring approval from a majority of designated signers. This post Alchemix Completes Cross-Chain Bridge Upgrade to V3, Onboards Deutsche Telekom as Validator first appeared on BitcoinWorld .
19 May 2026, 04:47
XRP ecosystem eyes privacy shift as Flare tests confidential cross-chain transactions
The XRP Ledger architecture is evolving to prioritize user privacy. Developers, including those of Flare, are working on confidential transaction protocols. More recently, highlighting Flare Networks’ unique capabilities, crypto community figure Eri noted on X that the platform validates Bitcoin and XRPL activity without compromising confidential user metrics. She noted that Encrypted Finance, which adds a privacy layer to Flare, can now execute up to 48 private functions directly on the protocol, including minting and swapping, dark pools, and sealed auctions. Flare, a Layer-1 blockchain focused on interoperability and data connectivity, has increasingly positioned itself as a smart contract and DeFi extension for XRP. As previously reported by Cryptopolitan, products such as FXRP enable XRP holders to deploy their assets across cross-chain decentralized finance applications without depending on centralized intermediaries. What has Encrypted Finance worked on? Encrypted Finance states that early blockchain architecture favored public settlement over financial privacy. It notes that, with addresses and asset movements recorded indelibly on-chain, the current system allows for validation but does not sufficiently protect sensitive data for users and corporates. Their novel project seeks to address these data-exposure issues with Flare-based “confidential execution.” Based on Flare Confidential Compute, this method encodes instructions and executes them in secure hardware enclaves, thereby preventing sensitive information from being exposed. The input is encrypted at entry, processed in secure enclaves, and kept encrypted at exit to ensure that the user activity and the system metrics are hidden from node runners. The network will rely on the Flare Data Connector (FDC) as a key piece of infrastructure to securely verify cryptographic relationships between XRP Ledger and Bitcoin transactions. It also argued that this protocol-level stack depends on three primary elements. The elements are Flare Confidential Compute for encrypted transaction execution, Time Series Oracle for decentralized pricing data, and Flare Data Connector for cross-chain verification. It also listed key use cases for the new tech: private swaps, lending, borrowing, staking, governance, treasury management, cross-chain transfers, limit orders, and FAsset actions. Moreover, it drew attention to features that are traditionally difficult to execute on transparent public ledgers, pointing to dark pools for whale-sized transactions and sealed-bid auctions as prime examples. It also guaranteed that applications and participants would control data-disclosure parameters rather than executing transactions on a completely transparent ledger. This infrastructure is currently operational on the Coston2 testnet, serving as a launchpad for universal cross-chain privacy infrastructure. Aside from Eri , many other community members applauded the team’s progress, describing it as a “huge” development. XRP is increasing its utility in DeFi Finance XRP has also been working on maximizing capital productivity. According to Asheesh Birla, the CEO of Evernorth, XRP is now expanding its utility across decentralized finance by functioning as working capital to back loans and generate interest streams. This development underscores a vital transition from passive holding to active utilization, allowing XRP to generate revenue streams and inject crucial liquidity into the network. Birla said the future of DeFi will not just be about transaction speed, but about extracting as much value as possible from on-chain assets. The next stage of digital finance will depend on how on-chain assets are leveraged, he believes. XRP price rally momentum subsided XRP started the new week trading around $1.41 , after last week’s breakout rally faded. The price of XRP had briefly approached $1.55 after lawmakers on the Senate Banking Committee advanced the CLARITY Act on May 14. Still, the rally ran into intense selling pressure around that level. The subsequent price contraction suggests that market participants used the vote to secure liquidity and realize profits. Many investors bought early in anticipation of the move, then scaled down positions after the announcement. XRP is still trading above its primary support zone as stronger inflows into XRP-based products help fuel market optimism. Over the next several trading sessions, investors will see whether demand remains strong enough to support prices. Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .
19 May 2026, 04:00
Ethereum Staking Ratio Hits 31% as Long-Term Holder Confidence Grows
BitcoinWorld Ethereum Staking Ratio Hits 31% as Long-Term Holder Confidence Grows The proportion of Ethereum’s circulating supply that is staked has reached 31%, continuing a steady upward trend that began earlier this year, according to data reported by Wu Blockchain. The figure marks a notable increase from 26% at the start of 2024 and represents a recovery from a period of sideways movement around the 29% level. What the Rising Staking Ratio Signals Staking involves locking ETH tokens to help secure the network in exchange for rewards. A rising staking ratio generally indicates that long-term holders are choosing to commit their assets rather than sell or trade them. This behavior reduces the amount of ETH available for trading on exchanges, which can act as a supply-side factor in the market. The current ratio of 31% means that nearly one-third of all Ethereum in circulation is now staked. This is a significant milestone for the network, which transitioned to a proof-of-stake consensus mechanism in September 2022 through the Merge upgrade. Institutional Factors Driving the Trend Wu Blockchain’s analysis points to two key developments that could further accelerate staking activity. The first is the potential expansion of spot Ethereum exchange-traded funds (ETFs) in major markets. While spot Bitcoin ETFs have already gained regulatory approval in the United States, the approval of similar Ethereum products could open the door for institutional investors to gain exposure to ETH through regulated financial instruments. The second factor is the growing trend of on-chain tokenization, where real-world assets such as bonds, real estate, or commodities are represented as digital tokens on the Ethereum blockchain. This trend has the potential to attract institutional capital to the Ethereum ecosystem, some of which may be directed toward staking as a yield-generating strategy. Price Impact Remains Uncertain Despite the positive signals from the staking ratio, analysts caution that the direct impact on ETH’s market price is not guaranteed. Wu Blockchain noted that while the staking ratio reflects holder confidence and reduces circulating supply, the actual effect on price will depend on how institutions allocate capital. Market participants should watch for concrete inflows into staking pools and ETF products rather than assuming automatic price appreciation. Comparison with Historical Trends The staking ratio has climbed steadily since the Shanghai upgrade in April 2023, which allowed validators to withdraw their staked ETH for the first time. Prior to that upgrade, many holders were hesitant to stake due to the lack of liquidity. The current 31% figure represents a maturation of the staking ecosystem and growing confidence in the network’s long-term viability. Conclusion The rise in Ethereum’s staking ratio to 31% is a measurable indicator of long-term holder commitment and reduced circulating supply. While institutional developments such as spot ETF approvals and on-chain tokenization could provide further momentum, the translation of these factors into price movements remains dependent on actual capital deployment. Investors and analysts should monitor staking inflows and regulatory developments as key metrics for assessing Ethereum’s market trajectory. FAQs Q1: What does it mean when the Ethereum staking ratio increases? A: A higher staking ratio means more ETH is locked in the network’s staking contracts, reducing the amount available for trading. It often signals confidence from long-term holders. Q2: How does the staking ratio affect Ethereum’s price? A: A higher staking ratio reduces circulating supply, which can be a positive price factor. However, price movements also depend on demand, market sentiment, and institutional capital flows. Q3: What could drive the staking ratio even higher? A: Key drivers include regulatory approval of spot Ethereum ETFs, increased institutional participation, and growth in on-chain tokenization that attracts capital to the Ethereum ecosystem. This post Ethereum Staking Ratio Hits 31% as Long-Term Holder Confidence Grows first appeared on BitcoinWorld .
