Crypto.com-Backed Tectonic Hack Forces Cronos Blockchain Halt

The Tectonic protocol, heavily promoted by Crypto.com, suffered an exploit on Sunday, leading to a halt and rewind of the Cronos blockchain. The hack resulted in an estimated $74 million in compromised funds, with PeckShield warning users to pause using the protocol altogether.

Crypto.com had been one of the largest retail onramps for Tectonic, offering over 20 fiat currencies for TONIC purchases through its exchange. The company also advertised staking returns of up to 100% per annum and promoted TONIC-denominated Visa card spending at 80 million merchants.

As a result of the hack, Cronos' CRO token lost 6% of its value over the past 24 hours. The total value locked (TVL) on Cronos DeFi protocols has fallen 92% since 2022.