Echo Protocol has halted withdrawals following a significant security breach that resulted in an estimated $266 million loss. The incident, which involves a sophisticated supply chain attack targeting the protocol’s wallet holding 2,515.648579 uBTC, is currently under investigation by security experts. The team confirmed this halt and promised to provide updates on their investigation as soon as possible. Echo Protocol’s collateral ratio dropped to 20%, highlighting the severity of the financial implications. The incident has raised concerns about the protocol’s stability within its ecosystem, potentially impacting uBTC holders and affecting market confidence in multi-sig and wallet infrastructures. This breach echoes previous attacks on DeFi platforms like Poly Network and Ronin Network, raising questions about overall vulnerability and security protocols in the industry.