Cronos has restored its blockchain to the point before an exploit hit Tectonic, reversing most of the suspicious activity recorded on the network.
The move may have protected some funds, but an estimated $6.29 million had already reached the Ethereum network before the validators could stop the chain.
Cronos rolls back the network
The incident started when an attacker reportedly tampered with the price of TONIC [the token of lending platform Tectonic], and it does not have a lot of trading activity, which made its price easier to manipulate.
What the attacker then did was allegedly push its price higher and then deposited the inflated assets into Tectonic, and the platform then allowed the attacker to borrow valuable assets against them, treating the deposit as worth more than it was.
Reports initially estimated that about $75 million had been taken from the lending platform, but Cronos and Tectonic have not confirmed the final amount.
What Cronos did in response was halting the entire blockchain, but they later restored its records to a point before the exploit occurred. What this move did was remove the affected Cronos transactions from the accepted history.
But the network resumed from block 90,896,189 on August 30, and Cronos said some features and functions could take more time to return.
Some funds had already reached Ethereum
The move by the network could reverse transactions that remained within it, but transactions completed on another blockchain can’t be reversed automatically.
According to Lookonchain, the attacker moved $6.29 million to Ethereum before Cronos stopped processing transactions, and those assets were then exchanged for 2,592 ETH.
$68.7 million reportedly remained on the network when it shut down, and restoring it to its earlier state looks to have prevented the attacker from retaining those assets.
The rollback protected Tectonic depositors from a potentially much larger loss, and it also means Cronos validators were able to throw away completed transactions during an emergency, raising questions about how permanent activity on the network really is.
Final Summary
- Cronos restored its blockchain to before the Tectonic exploit and resumed producing blocks.
- About $6.29 million had already reached Ethereum, while the final confirmed loss remains unknown.
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