Cronos Halts Blockchain After Tectonic Lending Exploit

Cronos, the blockchain launched by Crypto.com, was paused by its validators after an attacker allegedly manipulated the thinly traded TONIC token to borrow real assets from the Tectonic lending app, according to CoinDesk.

The incident is the latest in a string of collateral-price exploits and has left an estimated $75 million in losses unaccounted for while the network stays halted.

It marks one of the more consequential shutdowns for the chain, which Crypto.com holds up as the center of its ecosystem.

How the Attack Unfolded Tectonic accepted TONIC, its own token, as collateral even though the asset held only about $1.34 million in liquidity and roughly $11,000 in daily trading volume.