Crypto.com-Linked Platform Hit with $74 Million Token Manipulation Exploit
An attacker manipulated the value of Tonic tokens to borrow over $74 million from the Crypto.com-linked lending platform Tectonic, prompting Cronos to halt trading while an investigation continues.
According to blockchain security firm PeckShield, the attacker artificially inflated the price of Tonic tokens by 300-fold within 20 minutes, using them as collateral to borrow other assets. This economic exploit has left at least $6 million in the attacker's possession, with the total value of cryptoassets deposited on Tectonic falling from around $122 million to $3 million.
Crypto.com CEO Kris Marszalek stated that an investigation is underway and assured users that all funds are safe. The company is working closely with Cronos Labs to roll back the blockchain to its status before the incident, but a timeline for restoring the network has not been provided.