Cronos halts network after Tectonic exploit in ecosystem

Cronos, Crypto.com’s layer-one blockchain, temporarily halted network operations after an exploit hit ecosystem lending protocol Tectonic, Wu Blockchain reported. Tectonic showed that about $75 million in crypto was illicitly borrowed in the exploit, with around $6 million of that moved into ETH. On-chain analyst Weilin Li explained the attacker inflated the price of the low-liquidity TONIC token by about 100 times, then used the overstated collateral value to borrow roughly $75 million in assets. Before the Cronos network was halted, about $6 million had been moved into Ethereum, while most of the illicitly borrowed assets did not leave the network, Li said. Crypto.com said the exploit did not affect the Crypto.com app or exchange services.