Cronos Halts Network as Tectonic Faces Mango-Style Attack: $75M in Assets Reportedly Affected
Cronos halted its blockchain on Sunday after an exploit hit Tectonic, which occurs to be its largest lending protocol. Experts estimated that roughly $75 million in belongings have been affected.
So far, no timeline has been offered for when the community will resume. The blockchain has additionally not mentioned what is going to occur to the belongings linked to the attacker after the chain is restarted.
Third Mango-Style DeFi Attack?
Crypto.com CEO Kris Marszalek confirmed the safety breach and mentioned that the Cronos workforce was investigating the incident. The Cronos app and change weren’t affected and continued working as traditional, and Marszalek asserted that each one funds have been secure.
On-chain monitoring platform LookonChain reported that the attacker was solely in a position to bridge $6.29 million to Ethereum. These funds have been swapped for two,592 ETH when the community was halted. As a consequence, the remaining $68.7 million is caught on the Cronos Network.
Meanwhile, researcher Weilin Li said the assault was linked to Tectonic’s TONIC governance token, which has a 20% collateral issue regardless of having very skinny liquidity. According to Li, the attacker carried out a Mango Markets-style pump-and-borrow value manipulation assault, which induced TONIC’s value to surge 100-fold inside 20 minutes.
Similar price-manipulation assaults have additionally affected different DeFi platforms not too long ago. For occasion, Moonwell, a lending protocol on the Base community, misplaced over $8 million final week after an attacker manipulated the collateral value of MAMO, a small-cap token with skinny liquidity. In response, Moonwell minimize borrow caps for all Core Markets on Base to 1 wei, which successfully stopped new borrowing throughout the deployment. It additionally diminished provide caps for MAMO and WELL to 1 wei, whereas leaving different provide caps unchanged.
Another current case concerned a low-liquidity Pendle market, the place value manipulation led to about $36 million in liquidations of leveraged PT-reUSD positions on Morpho.
Aftermath
Tectonic’s locked belongings have dropped sharply following the exploit. According to the newest stats by DefiLlama, the lending protocol held round $121 million on August 29.
Two days later, that determine had fallen to roughly $3 million.
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