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Cronos halts after Tectonic exploit tied to roughly $75 million

The exploit is believed to have involved manipulating the illiquid TONIC token before borrowing against inflated collateral, with the attacker bridging only about $6 million to Ethereum before the Cronos network stopped.

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Cronos, the blockchain ecosystem linked to Crypto.com, halted its network after identifying an exploit impacting Tectonic, its largest lending protocol, The Block reported. An onchain researcher estimated the incident affected roughly $75 million, though Tectonic has not confirmed the amount or the root cause.

According to the report, the suspected attacker manipulated the price of Tectonic’s illiquid TONIC token and then borrowed against the inflated collateral, a pattern compared to a Mango Markets-style hack. The attacker was able to bridge only about $6 million to Ethereum before Cronos halted.

Crypto.com CEO Kris Marsalek said Crypto.com’s app and exchange were not compromised, and that the company’s security team is assisting with the investigation, The Block reported. Tectonic said it was investigating and urged users not to interact with the protocol until it confirmed the system was safe.

Before the incident, Tectonic had about $121.7 million in total value locked and about $82.7 million in active loans, based on DefiLlama data cited by the outlet. Tectonic had not yet confirmed the extent of the damage or provided further details on what triggered the exploit at the time of publication.

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