Cronos Freezes Entire Chain After $75M Tectonic Exploit

Cronos, a layer-1 blockchain built by Crypto.com, suspended all activity on August 30 after an attacker exploited Tectonic, its largest lending protocol. The attack drained tens of millions from Tectonic's deposits and loans.

The attacker used a 'Mango-market style' pump-and-borrow strategy to inflate the price of TONIC, Tectonic's governance token, which had only $1.34 million in liquidity and $11,000 daily volume. The protocol allowed borrowing against it at a 20% collateral factor.

Tectonic told users to stay away from its platform until further notice, and the total value locked on DefiLlama's dashboard collapsed to around $3 million from nearly $121.7 million in deposits and $82.7 million in loans before the attack.