Cronos Network resumed block production Sunday after validators halted the blockchain to contain an attack on Tectonic, its largest lending protocol. In a post on X, the network said the shutdown aimed to stop the attacker from removing more funds from the ecosystem.
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The chain returned at 23:49 UTC on August 30 from block 90,896,189. Its state was restored to the point recorded before the attack.
Cronos Network said validators coordinated the emergency action to protect users during the active exploit. Node operators were told to restart systems with Cronos v1.7.8 and snapshots published that morning.
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Cronos Monitors Network After Aug. 30 Tectonic Exploit
Blockchain continues to be monitored as the team ensures its stability. Some protocols, bridges, explorers, and remote procedure call providers may need more time to resume services.
The technical postmortem is yet to be published. According to the Cronos Network, the report will cover information regarding the exploit and restoration.
The hacker aimed at affecting the price of TONIC, the governance token for Tectonic. The value of TONIC allegedly rose 100 times in just 20 minutes despite the liquidity of around $1.34 million.
The attacker was able to deposit the pumped-up TONIC tokens as collateral. This enabled the attacker to borrow from other assets within the Tectonic lending pools, leading to massive outflow.
The loss calculations vary depending on the wallets used. Weilin Li, an on-chain researcher, initially estimated that the attacker was able to drain around $66 million.
Later, Li changed the loss estimate to around $75 million due to the discovery of another wallet related to the attacker. The investigation has not produced a final loss figure.
Crypto.com Platforms Remain Unaffected
On Sunday, Crypto.com CEO Kris Marszalek said the company’s exchange and app were not affected. He also stated that customer funds on those platforms remained safe.
Meanwhile, security teams from Crypto.com and Cronos Network continued their investigations. The inquiry will explore how the attackers exploited the TONIC protocol and obtained access to assets from the lending pools.
In another update, Cronos Network said that its beta app was back up for testing. More features were expected in the coming days, and it reiterated that users’ funds were secure.
What Cronos Network Restored
Halting the entire blockchain as an act of security is an extreme measure that should be taken in response to an active attack causing continued losses. According to reports, out of $74 million that was stolen, only $6 million escaped the blockchain.
This suggests that the halting prevented the attacker from moving most of the funds. Nevertheless, the forthcoming postmortem report should give answers about the hack and the varied figures of losses.
Cronos Network has now brought its base layer back online, but restoration to full functionality, among other integrated platforms, is ongoing. Developers will observe the processes as the infrastructure is gradually brought back online.
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