Cronos Network Halted After $119.5M Tectonic Lending Protocol Exploit
The Cronos Network has paused operations following an exploit on its lending protocol, Tectonic. The attack, which occurred on August 30, 2026, resulted in an estimated loss of $119.5 million from lending pools.
According to an on-chain analysis, the attacker first deposited 3,091 TONIC tokens and borrowed 3,697 TONIC tokens in a single block. Just 14 seconds later, the price of TONIC oracle jumped 6.46 times, increasing the value of the attacker's collateral and allowing them to borrow $125.6 million.
The attacker then withdrew assets including USDC, USDT, WBTC, WETH, CRO, and other tokens. The analysis shows that about $75.7 million was sent to an external wallet, while another $43.7 million went to a contract address.
Tectonic has not confirmed the final loss, but its team is investigating with assistance from Crypto.com's security team. The Cronos Network has halted operations while the investigation continues.