Cronos Network Halted After Exploit on Crypto.com Lending Protocol

The Cronos network was halted after an exploit on Tectonic, a lending protocol associated with Crypto.com. The estimated impact of the attack is around $75 million in assets affected.

According to on-chain researcher Weilin Li, the attacker inflated the price of the low-liquidity asset TONIC by 100x in approximately 20 minutes. This artificially inflated price was then used as collateral to borrow other assets from Tectonic.

The attacker managed to move around $6 million to Ethereum before Cronos was halted. However, most of the affected assets remained on Cronos.