Cronos Network Halted After $75M Estimated Loss in Tectonic Exploit

Cronos Network has halted operations following an exploit on Tectonic, its largest lending protocol. The estimated loss is approximately $75 million.

Tectonic had around $121.7 million in total value locked and about $82.7 million in active loans prior to the incident.

Onchain researcher Weilin Li attributed the exploit to manipulation of TONIC, Tectonic's governance token. The attacker allegedly inflated the price of TONIC 100-fold within 20 minutes before using it as collateral to borrow other assets.