Cronos Halted as $75M in Assets Affected by Tectonic Exploit
Cronos has halted its blockchain after an exploit targeted Tectonic, its largest lending protocol. The attack is estimated to have affected around $75 million in assets.
The incident bears a resemblance to a 'Mango-Style' DeFi attack, where the attacker manipulated the price of Tectonic's governance token, TONIC, causing it to surge 100-fold within 20 minutes. This led to a massive drop in value for Tectonic's locked assets, from around $121 million on August 29 to just $3 million two days later.
The Cronos team is investigating the incident and has not provided any information on what will happen to the affected assets once the network resumes. Crypto.com CEO Kris Marszalek confirmed the security breach and stated that all funds were safe, but the attacker was only able to bridge $6.29 million to Ethereum.