Overview
- On Aug. 30 an attacker raised TONIC’s price in thin DEX markets and used the inflated token as collateral to borrow $120.4 million from nine Tectonic lending markets.
- Validators halted the Cronos chain, then rolled it back 10,961 blocks—1 hour 54 minutes of history—to reverse roughly $111.2 million of the borrowed funds.
- About $9.19 million, roughly 7.6% of the borrowed amount, left Cronos before the halt and remains unrecovered because it settled outside the restored chain state.
- Cronos and outside analysts say the oracle reported the observed market price correctly but Tectonic failed to account for sell-side liquidity, which allowed the inflated price to support outsized loans.
- Cronos has resumed block production after coordinated client updates, restored explorers and public endpoints, told users no action is required, and is working with exchanges and bridges to reconcile records while questions about validator rollbacks and finality remain unanswered.