Cronos: Block 10,961 network rollback fails to save $9,19 million in assets

The developers of the first-layer blockchain Cronos stated that $9,19 million in assets were withdrawn from the network before validators stopped working during the Tectonic exploit.

Previously edited Happy Coin News ReportedA serious security incident involving the Tectonic lending protocol occurred in the Cronos ecosystem. The attack involved manipulation of the price of the TONIC governance token. Due to the asset's limited liquidity, the hacker was able to artificially inflate its price and use it as collateral to obtain loans on nine of the protocol's markets. The total amount stolen was $120,4 million.

The Cronos team responded swiftly, halting the network and rolling back the blockchain to block 10,961. This allowed for the recovery of approximately $111,2 million, but $9,19 million had already left the network via inter-chain bridges and exchanges before the blockchain shutdown. This represents approximately 7,6% of the total stolen funds. Furthermore, this is more than the $8,3 million previously transferred to Ethereum, according to blockchain data provider Bitquery.

The network was restored within approximately 11 hours. All core services are currently functioning normally. The incident exposed a serious vulnerability in the protocols to oracle manipulation on low-liquidity assets, reminiscent of the 2022 attack on Mango Markets, which cost the platform $110 million.