Crypto.com's Cronos Halts Entire Blockchain After $75M Tectonic Exploit
Cronos halted its entire blockchain to contain a major exploit on Tectonic, its largest lending protocol, freezing all network activity and user positions. The attack used a Mango Markets-style price manipulation: Tectonic’s illiquid TONIC governance token was pumped sharply, then used as overvalued collateral to borrow assets. Estimates of the loss range from about $74 million to $75 million. Cronos said it identified an exploit and paused the chain with help from security teams. The shutdown limited the damage: only about $6 million was bridged to Ethereum, while roughly $60 million remained stuck on Cronos. Tectonic had held about $121.7 million in deposits before the incident, nearly half of Cronos DeFi capital, but holdings collapsed afterward. Cronos has no restart timeline yet, and neither Cronos nor Tectonic has confirmed whether users will be reimbursed.
