Cronos Halted After $75 Million Tectonic Exploit, Fate of Stolen Funds Uncertain
Cronos, a blockchain network, halted its operations on Sunday after discovering an exploit in the decentralized lending protocol Tectonic. The attack involved an estimated $75 million, with most of it remaining on the Cronos network at the time of writing.
Weilin Li, a researcher, explained that the attacker exploited Tectonic's 20% collateral factor and thin liquidity to pump the governance token's price by 100-fold within 20 minutes. This is referred to as a 'Mango-market style' pump-and-borrow attack.
Crypto.com CEO Kris Marszalek stated that the company's app and exchange were unaffected and operating normally, with funds remaining safe. However, Cronos and Tectonic have not provided details on whether they will restrict the attacker's addresses, recover the assets, or compensate affected users.