Echo Protocol Suspends Withdrawals After Major Security Breach, Affecting DeFi Market

The Echo Protocol has abruptly halted withdrawals following a significant security breach that resulted in a loss of approximately $266 million worth of cryptocurrency. The attack, which exploited a supply chain vulnerability, compromised the protocol’s wallet and left its collateralization ratio critically low at 20%. This event has sent shockwaves through the DeFi market, leading to concerns about asset devaluation and potential de-pegging risks for related derivatives.