Cronos Halted Due to Tectonic Exploit, Estimated Losses Reach $75 Million

The Cronos network has been halted due to an exploit in Tectonic, a lending protocol on the Cronos blockchain. The incident was confirmed by both Tectonic and the Cronos Network.

Tectonic is a decentralized lending protocol that allows users to borrow assets using their own holdings as collateral. According to Weilin Li, an on-chain analyst, the exploit involved manipulating the price of TONIC, the governance token of Tectonic, by approximately 100 times in just 20 minutes.

This caused the collateral value of TONIC to increase significantly, allowing users to borrow more assets. Lee estimated that the affected amount was around $6.6 million, but later revised it to $75 million after discovering additional funds being transferred from a related wallet address.