Cronos pauses network after alleged $75 million Tectonic lending exploit

Cronos validators paused the blockchain after an alleged exploit at Tectonic, a lending application on the network, according to CoinDesk. The incident reportedly involved an attacker driving the thinly traded TONIC token up by 100 times before using it as collateral to borrow real assets. Most of the borrowed funds were left stranded after the network was halted. The reported event puts attention on TONIC’s market liquidity, collateral valuation and the wider operational impact on Cronos. CoinDesk identified the value associated with the exploit as $75 million. The source did not provide details on the attacker’s identity or indicate whether the borrowed assets could be recovered. The network pause also adds a disruption risk for users and applications operating on Cronos while validators address the incident.