The Cronos network has suspended operations due to an attack on Tectonic, with estimated losses of around 75 million dollars

The Cronos network associated with Crypto.com has paused operations after detecting an attack on the lending protocol Tectonic. The Cronos Network stated on the X platform that it has identified vulnerabilities on Tectonic and has paused the network. Tectonic also confirmed that it is investigating the related incident and advised users not to interact with the protocol until safety is confirmed. According to DefiLlama data, Tectonic had a total locked value of approximately $121.7 million before the incident, with active loans of about $82.7 million.

On-chain researcher Weilin Li attributed the attack to price manipulation of the TONIC token. The attacker bought enough TONIC within 20 minutes to inflate its price by about 100 times, and then used the inflated tokens as collateral to borrow other assets from Tectonic, a method similar to the 2022 Mango Markets oracle manipulation attack. Li initially estimated that the attacker profited about $66 million, and later discovered another address controlled by a different attacker containing about $8 million, bringing the total estimate to around $75 million. Li also stated that the attacker only successfully bridged about $6 million to Ethereum, as the pause on the Cronos network prevented most affected assets from flowing out.

Crypto.com CEO Kris Marsalek stated that the company's app and exchange were not attacked, and its security team is assisting Tectonic with the investigation.