Cronos Network Halted After $75M Lending Protocol Hack

A major security breach occurred on the Cronos network on Sunday at noon (UTC), when an attacker exploited Tectonic, a leading decentralized lending protocol within its ecosystem.

The hacker used Tectonic's thin liquidity to pump up the price of TONIC tokens by around 39,140% in under half an hour. They then used these inflated tokens to borrow millions of dollars' worth of other crypto assets.

Independent validators quickly detected the attack and froze the network mid-attack, halting the transfer of $69 million in compromised funds. However, the attacker managed to bridge approximately $6 million to Ethereum (ETH).

Crypto.com confirmed the incident but declined to disclose the exact amount lost, citing an estimated $75 million in compromised assets.