Cronos Halted After Tectonic Exploit Puts $119.5M At Risk
Cronos has suspended its network after an exploit on Tectonic, its largest lending protocol, put approximately $119.5 million in assets at risk.
The attack involved manipulating TONIC, Tectonic's governance token, which caused the value of collateral to increase and enabled the attacker to borrow more than usual.
According to on-chain analysis, the attacker deposited 3,091 TONIC tokens and borrowed 3,697 TONIC within a single block. About 14 seconds later, the TONIC oracle price increased by roughly 6.46 times in a single block, allowing the attacker to access approximately $125.6 million in borrowing capacity.
The incident has raised concerns about the resilience of decentralized lending systems that rely on token price oracles to determine collateral values and borrowing limits.