Crypto Hack: Cronos Freezes Network After Tectonic Attacker Drains an Estimated $75M

Key Insights:

• Cronos halted block production after a Tectonic crypto hack affected about $75M.
• Roughly $60M remained on Cronos after validators stopped further block production.
• Crypto.com said its app and exchange stayed operational during the Cronos halt.

Cronos Network halted block production after a crypto hack targeted decentralized lending protocol Tectonic. Independent researcher Weilin Li estimated that roughly $75 million in assets were affected during the incident.

Following the halt, no restart schedule or depositor compensation framework had been announced by the time of reporting. However, Tectonic warned users not to interact with the protocol while its investigation continued.

In addition, Crypto.com said its main application and centralized exchange remained operational during the Cronos Network halt.

Crypto Hack Reportedly Used Inflated TONIC Collateral

Li said the attacker exploited TONIC, Tectonic’s governance token, which reportedly carried a 20% collateral factor. TONIC also traded with limited liquidity during the attack.

Li initially said the attacker pushed TONIC’s price roughly 100-fold within about 20 minutes. The attacker then deposited inflated tokens and borrowed other assets from Tectonic.