Tectonic Attack Exposes Economic Weaknesses in Decentralised Lending Protocols

An attacker has exploited a weakness in the decentralised lending platform Tectonic to drain at least $6 million from users, sparking panic among crypto enthusiasts.

The attack occurred when the attacker artificially inflated the value of the native Tonic token by 300 times within 20 minutes, allowing them to use the pumped tokens as collateral to borrow over $74 million in other assets.

Blockchain security firm PeckShield disclosed the exploit on Sunday, revealing that validators governing the Cronos blockchain halted all trading activity after discovering the attack.