🚨 ALERT: Cronos paused the network after US$ 75M exploit
The Cronos network stopped 100% of its operations after an attack on Tectonic, the network’s largest lending protocol.
🔍 HOW IT HAPPENED:
The attacker exploited a 20% collateral factor of the TONIC token + low liquidity. They inflated the price of TONIC by 100x in 20 minutes and used it as collateral to drain the pools. A pump-and-borrow technique, similar to Mango Markets.
💰 NUMBERS:
• Estimated total: US$ 75M
• Tectonic TVL: $121.7M → $3M (-97%)
• Escaped to Ethereum: $6.29M (2,592 ETH)
• Stuck on Cronos: $68M (only frozen because the chain is paused)
⚙️ WHY DID THE NETWORK STOP?
PoA consensus validators paused block production to prevent the rest from being drained. The $68M were NOT recovered; they’re only frozen while the network is down.
If it comes back without a block/patch, the attacker can move funds again.
💬 Crypto.com says the app and exchange were not affected.
This highlights the dilemma: centralization saved $68M, but it also proves the network can be paused by a small group of validators.
Still no return schedule or compensation plan.
#Cronos #CRO #Tectonic #Exploit #DeFi #CryptoNews #CryptoCom #CryptoAlert
⚠️ DISCLAIMER: Educational and informational content only, based on public news (CoinTelegraph, PeckShield, Lookonchain). Not investment advice. Do not interact with the Tectonic protocol until an official update.
The Cronos network stopped 100% of its operations after an attack on Tectonic, the network’s largest lending protocol.
🔍 HOW IT HAPPENED:
The attacker exploited a 20% collateral factor of the TONIC token + low liquidity. They inflated the price of TONIC by 100x in 20 minutes and used it as collateral to drain the pools. A pump-and-borrow technique, similar to Mango Markets.
💰 NUMBERS:
• Estimated total: US$ 75M
• Tectonic TVL: $121.7M → $3M (-97%)
• Escaped to Ethereum: $6.29M (2,592 ETH)
• Stuck on Cronos: $68M (only frozen because the chain is paused)
⚙️ WHY DID THE NETWORK STOP?
PoA consensus validators paused block production to prevent the rest from being drained. The $68M were NOT recovered; they’re only frozen while the network is down.
If it comes back without a block/patch, the attacker can move funds again.
💬 Crypto.com says the app and exchange were not affected.
This highlights the dilemma: centralization saved $68M, but it also proves the network can be paused by a small group of validators.
Still no return schedule or compensation plan.
#Cronos #CRO #Tectonic #Exploit #DeFi #CryptoNews #CryptoCom #CryptoAlert
⚠️ DISCLAIMER: Educational and informational content only, based on public news (CoinTelegraph, PeckShield, Lookonchain). Not investment advice. Do not interact with the Tectonic protocol until an official update.