Cronos Confirms $9.19M Unrecovered After Tectonic Price Manipulation Attack

Cronos has confirmed that $9.19 million remains unrecovered after an attacker exploited Tectonic, borrowing $120.4 million from the lending protocol using manipulated TONIC collateral.

The attack began on August 30 when contracts were deployed to manipulate the market price of TONIC, a thinly traded token accepted as collateral by Tectonic.

Once the token's price was inflated, the attacker supplied the collateral and borrowed $120.4 million across nine markets on Tectonic.

Cronos validators halted the network after identifying the malicious activity 36 minutes later, preventing further transactions while the incident was investigated.