$75M Cronos Exploit Forces Halt of Operations Amid TONIC Token Price Manipulation

A Tectonic exploit has resulted in a reported $75 million loss of digital assets. The attacker manipulated the price of the TONIC token to borrow other assets from the platform.

Tectonic is the largest lending pool on Cronos, an Ethereum-based Layer 1 blockchain backed by Crypto.com. In response to the exploit, Cronos halted its operations to prevent further damage. Crypto.com's security team is assisting in the investigation.

The attacker pushed the TONIC token price up nearly 100 times within 20 minutes, using the inflated value as collateral to borrow other assets. This highlights the risks of using thinly traded tokens with limited liquidity.