Tectonic Suffers $120.4 Million Oracle Manipulation Attack

The Cronos-based lending protocol Tectonic was hit by an oracle manipulation attack on August 30, 2026. The attacker inflated the price of TONIC collateral by 195 times through repeated borrowing and re-collateralization, allowing them to drain $120.4 million in assets including USDC, USDT, WBTC, and WETH. Cronos validators paused the network and rolled back the state, recovering most funds, though $9.19 million was successfully moved off-chain. Lending functions remain paused while withdrawals and repayments are active.