Cronos Erases Transaction History to Recover $111M from Hacking Attack
The Cronos blockchain, backed by Crypto.com, took the drastic measure of erasing almost two hours of transaction history to recover approximately $111.2 million linked to a hacking attack on the lending protocol Tectonic.
According to the post-incident analysis from the Cronos team, validators reversed completed transactions to protect around 92% of the affected funds still in the network, disregarding the expectation that blockchain transactions are permanent.
'It was a difficult decision made jointly with validators, weighing the purpose users expect from a chain against funds at risk,' wrote the Cronos developers. 'Restoring the state meant discarding one hour and 54 minutes of liquidated transactions.' The alternative would have left borrowed assets under the hacker's control.
The reversal also canceled all legitimate transactions processed during that period.