Cronos Blockchain Reboots After $74M Price Manipulation Attack
The Cronos blockchain has resumed trading activity after a significant price-manipulation attack on the Tectonic cryptocurrency lending platform. The attacker artificially inflated the price of TONIC, the token used by Tectonic, by 100 times in just 20 minutes, allowing them to borrow $74 million worth of real assets.
The exploiter was able to steal approximately $6 million worth of Ethereum, but left around $68 million stuck on the Cronos blockchain. The attack occurred through Tectonic's decentralized finance (DeFi) lending app, which is associated with Crypto.com and holds a total value locked of just under $3 million after the incident.
Cronos took swift action to halt the blockchain's operation and freeze all transactions in progress at the time. The network has since restarted, with Cronos stating that it 'is producing blocks again and is fully back online.'