Cronos Blockchain Halted After $75M Tectonic Exploit

Cronos, a blockchain network, halted block production on August 30 after detecting an exploit involving Tectonic, a decentralized lending protocol operating on the network. The incident has left approximately $75 million affected, with around $6 million of that amount transferred to Ethereum before the halt.

Tectonic's governance token, TONIC, was used as collateral in the attack. According to researcher Weilin Li, the attacker inflated the price of TONIC roughly 100-fold over about 20 minutes and then supplied the tokens as collateral to borrow other assets from Tectonic.

Crypto.com, which operates on the Cronos network, said its centralized app and exchange remained unaffected by the incident. However, funds deposited directly into Tectonic were not covered by Crypto.com's guarantees.