Cronos Network pauses following Tectonic lending protocol exploit

Cronos Network pauses following Tectonic lending protocol exploit

Crypto.com CEO Kris Marszalek stated that the breach did not affect Crypto.com's main app or exchange.

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By Editorial Team
Edited by Vivian Nguyen

Cronos Network, a blockchain ecosystem associated with Crypto.com, halted operations in response to an exploit in Tectonic, a decentralized finance protocol that allows users to lend and borrow crypto assets on the Cronos blockchain, according to an Aug. 30 announcement.

Tectonic confirmed it was dealing with an incident and asked users to avoid interacting with the protocol while its team investigates.

The project said it would provide a verified update once the investigation produces more information. No details were provided on the vulnerability involved or the extent of any losses at press time.

Tectonic enables users to supply crypto to earn interest or borrow supported assets by locking up collateral. TONIC, the protocol’s native token, is used for governance and other utilities, while holders can stake it as xTONIC to participate in protocol revenue.

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According to preliminary analysis by on-chain researcher Awoo, the attacker appears to have manipulated the price of the TONIC token before using the inflated value as collateral to borrow funds from the protocol.

https://twitter.com/awoocronos/status/2094079412266238055?s=20

The attacker allegedly bought around 16 trillion TONIC across three VVS pools using roughly $600,000 in USDC and CRO, which caused the token’s price to rise about 40%, before depositing the tokens into Tectonic alongside $5 million in USDC.

After two test loans, the attacker reportedly drained roughly $120 million in a single transaction, taking USDC, USDT, WBTC, WETH and CRO. Awoo estimates the attacker spent about $5.6 million of their own funds to execute the operation, while copycat traders later extracted roughly $2 million.

In a statement, Crypto.com CEO Kris Marszalek emphasized that the breach did not affect Crypto.com’s main app or exchange.

Marszalek stated that all funds are safe and that he will provide additional information as more details become available. He also committed to a full postmortem after the investigation into the Tectonic breach is completed.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
FINANCE
Cronos Network pauses following Tectonic lending protocol exploit
Cronos Network pauses following Tectonic lending protocol exploit

Crypto.com CEO Kris Marszalek stated that the breach did not affect Crypto.com's main app or exchange.

By Editorial Team
Edited by Vivian Nguyen

Share

Add us on Google

Cronos Network, a blockchain ecosystem associated with Crypto.com, halted operations in response to an exploit in Tectonic, a decentralized finance protocol that allows users to lend and borrow crypto assets on the Cronos blockchain, according to an Aug. 30 announcement.

Tectonic confirmed it was dealing with an incident and asked users to avoid interacting with the protocol while its team investigates.

The project said it would provide a verified update once the investigation produces more information. No details were provided on the vulnerability involved or the extent of any losses at press time.

Tectonic enables users to supply crypto to earn interest or borrow supported assets by locking up collateral. TONIC, the protocol’s native token, is used for governance and other utilities, while holders can stake it as xTONIC to participate in protocol revenue.

Advertisement

According to preliminary analysis by on-chain researcher Awoo, the attacker appears to have manipulated the price of the TONIC token before using the inflated value as collateral to borrow funds from the protocol.

https://twitter.com/awoocronos/status/2094079412266238055?s=20

The attacker allegedly bought around 16 trillion TONIC across three VVS pools using roughly $600,000 in USDC and CRO, which caused the token’s price to rise about 40%, before depositing the tokens into Tectonic alongside $5 million in USDC.

After two test loans, the attacker reportedly drained roughly $120 million in a single transaction, taking USDC, USDT, WBTC, WETH and CRO. Awoo estimates the attacker spent about $5.6 million of their own funds to execute the operation, while copycat traders later extracted roughly $2 million.

In a statement, Crypto.com CEO Kris Marszalek emphasized that the breach did not affect Crypto.com’s main app or exchange.

Marszalek stated that all funds are safe and that he will provide additional information as more details become available. He also committed to a full postmortem after the investigation into the Tectonic breach is completed.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.