Tectonic | Crypto

Cronos’s post-mortem put the Tectonic exploit’s affected borrowing at $120.4 million, with 7.6% transferred off-network before validators intervened. Layer-1 blockchain Cronos said $9.19 million left its blockchain before validators halted the network during the Tectonic exploit, providing an official accounting of funds that were not reversed by its rollback.  In Tuesday’s post-mortem report, Cronos said manipulated collateral values generated about $120.4 million in borrowing activity. Restoring the network to its pre-exploit state reversed about $111.2 million, leaving 7.6% of the affected funds outside of the network.  The disclosure confirms the scale of the incident after earlier estimates placed the amount affected at about $75 million. It also puts the amount transferred off Cronos at $9.19 million, above the $8.3 million previously traced to Ethereum by blockchain data provider Bitquery. Read more

An attacker allegedly pushed Tectonic’s thinly traded TONIC token up 100-fold, used it as collateral to borrow real assets and left most funds stranded when Cronos validators paused the network.

Crypto.com CEO Kris Marszalek said the company’s app and exchange were unaffected by the Tectonic breach and continued operating normally. Cronos halted its blockchain after an exploit targeting decentralized lending protocol Tectonic involved an estimated $75 million, most of which remains on the Cronos network at the time of writing.  On Sunday, Cronos said it identified an exploit in Tectonic and halted the network, promising updates. Tectonic separately warned users not to interact with the protocol while it investigated. Neither project has confirmed the cause or loss, and no restart timeline had been announced at publication. Researcher Weilin Li said the attacker exploited TONIC’s 20% collateral factor and thin liquidity, pumping the governance token’s price 100-fold within 20 minutes before borrowing other assets. Li described it as a “Mango-market style” pump-and-borrow attack.  Read more