Crypto.com's Cronos Halts Entire Blockchain After $75M Tectonic Exploit
Crypto.com’s Cronos Halts Entire Blockchain After $75M Tectonic Exploit
It was possible because Cronos runs a capped validator set of 100, small enough to coordinate a shutdown quickly. The trade-off is that everything else stopped too: open loans, trades, payouts, and automated positions belonging to users who never touched Tectonic.
Crypto.com CEO Kris Marszalek said the exchange and app were operating normally and that customer funds were safe, promising a postmortem. Tectonic told depositors not to interact with the protocol until it confirmed doing so was safe.
Li called it the third Mango-style attack in recent weeks, following one on Moonwell, where manipulation of the illiquid MAMO token cost an estimated $8.7 million, and another on a Pendle reUSD market that triggered roughly $36 million in liquidations on August 25.
It is not Tectonic's first breach. DefiLlama records two earlier incidents on the protocol, both classified as protocol logic failures: one in February 2024 that cost $250,000, and another in November 2024. It classifies Sunday's attack differently, as oracle manipulation carried out through spot price manipulation, and puts the loss at $75 million.
Neither Cronos nor Tectonic has given a restart timeline, confirmed a final figure, or said whether depositors will be made whole.
This article has been published in decrypt.co via Yahoo News.
Crypto.com's Cronos Halts Entire Blockchain After $75M Tectonic Exploit
Some $6 million reached Ethereum before validators froze the chain, stranding the rest on a network that still is not producing blocks.
finance.yahoo.com
