- After a brief halt brought on by the Tectonic exploit, the Cronos network has started producing blocks again. According to reports, the attacker changed the price of TONIC, causing it to increase by about 100 times in just 20 minutes.
- Other assets were borrowed from Tectonic’s lending pools using the inflated TONIC price as collateral. The damages from the Tectonic hack were first estimated to be $66 million, but they were eventually increased to almost $75 million.
- A different research calculated the overall outflows before bad debt and liquidations to be about $119.5 million. According to reports, about $6 million in money was transferred to Ethereum and turned into ETH.
Cronos resumes block production after validators halt the chain, while users await clarity on funds, losses and the impact of the Tectonic attack.
Cronos, the layer‑1 blockchain created by Crypto.com has started making blocks after validators stopped the network for a short time to stop an attack on Tectonic, the biggest lending program on Cronos.
The Cronos Network is producing blocks again and is fully back online.
The Cronos Network halted earlier today. This was a validator-consensus emergency action to protect users from an exploit on the Tectonic protocol. The chain state was restored to before the Tectonic exploit…
— Cronos Network (@CronosNetwork) August 31, 2026
The Cronos Network team said on X that Cronos was online after a validator‑led emergency stop. The move was designed to limit the attacker’s ability to move funds and protect users while security teams investigated the incident.
Block production restarted at 23:49 UTC on August 30, starting from block 90,896,189. Cronos has fixed the network state back to the condition it had before the attack. Cronos told node operators to restart their systems using Cronos version 1.7.8 and the snapshots that the team supplied. However, Cronos recovery is not yet finished across the Cronos ecosystem.
Some decentralized applications, RPC providers, blockchain explorers and bridges may require additional time to fully restore their services. Cronos said the network would remain under observation while stability was confirmed.
TONIC Manipulation Leaves Tectonic Facing Millions In Potential Losses
The network halt followed an attack on Tectonic on August 30. The attacker reportedly manipulated the price of TONIC, Tectonic’s governance token, pushing its value roughly 100 times higher within around 20 minutes.
The sharp price increase occurred despite TONIC having relatively limited trading liquidity. The attacker then used the inflated token value as collateral to borrow other assets from Tectonic’s lending pools, triggering a significant outflow of funds.
Estimates of the losses differ. Blockchain researcher Weilin Li initially estimated that around $66 million was drained before revising the figure to approximately $75 million after identifying another wallet linked to the attacker.
A separate analysis estimated total outflows from Tectonic’s pools at about $119.5 million before accounting for liquidations and bad debt. Around $6 million reportedly moved to Ethereum and was converted into ETH before the Cronos network was halted.
Crypto.com CEO Kris Marszalek said the company’s exchange and app were not affected and that customer funds held on those platforms remained safe.
Users Await Answers After The Rollback
The network restart has also raised questions among Cronos users. Some users reported missing balances and asked whether the rollback would restore their funds. Others questioned the broader implications of reversing blockchain activity during an emergency.
Tectonic users are also waiting for clarity on interest-bearing deposits and collateralised loans that were active when the network was halted. Tectonic is expected to publish a verified update after completing its investigation, while Cronos has committed to a technical postmortem.
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