ChainCatcher report: The Cronos lending protocol Tectonic has released a report on the August 30 attack, revealing that the attacker manipulated the TONIC price by approximately 195 times and engaged in circular collateralization, borrowing around $120.4 million across nine lending markets. After Cronos paused the network and restored its state, most assets were returned to their pre-attack levels; however, approximately $9.19 million has been transferred across chains and remains unrecovered. The team plans to phase out low-liquidity collateral and implement borrowing limits per market.
Tectonic Discloses $12.04M Attack, $9.19M Still Unrecovered
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Summary
On August 30, Tectonic disclosed a $12.04 million exploit, with $9.19 million still unaccounted for after cross-chain transfers. Attackers inflated the price of TONIC by 195x and used it as recursive collateral across nine markets. Cronos paused the network and restored most assets, but recovery efforts are still underway. The team plans to remove low-liquidity collateral and adjust borrowing limits. Traders monitoring altcoins to watch may observe the incident’s impact on the Fear & Greed Index.
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