Cronos Halted After Tectonic Lending Protocol Hit by $75M Security Breach
A major security breach has hit the Tectonic lending protocol on Cronos, resulting in the draining of approximately $75 million. The attacker exploited a weakness in the collateral factor applied to the governance token, TONIC, by manipulating its price and borrowing heavily against it.
Tectonic's books showed around $121.7 million in deposits and $82.7 million in active loans prior to the breach, which represented nearly half of all DeFi capital on Cronos.
As a precautionary measure, Cronos halted block production on August 30, bringing every application on the chain to a standstill, including gaming titles that depend on network uptime.
Crypto.com CEO Kris Marszalek confirmed the incident and stated that the company is assisting with an investigation. He emphasized that all funds remain secure and that users can continue to use the Crypto.com exchange and app normally.