The Tectonic lending protocol on the Cronos blockchain suffered a major exploit, with an estimated $75 million drained, forcing the entire network to halt operations in the middle of the attack to prevent further losses.
The attacker employed a sophisticated tactic: pumping the thinly traded TONIC token by an astonishing 100x in just 20 minutes, then using the inflated collateral to borrow millions in other assets before the price crashed.
Thanks to Cronos's swift response, the network was frozen before the bulk of the funds could escape. Approximately $69 million** remains trapped on-chain, while only about **$6 million was successfully bridged to Ethereum before the halt.
Prior to the exploit, Tectonic held roughly $122 million** in Total Value Locked (TVL) and **$83 million in active loans. The $75 million estimate has not yet been independently confirmed by Tectonic or Cronos.
Crypto.com confirmed that its main app and exchange were not compromised, and its security team is actively assisting with the ongoing investigation.