Cronos, the blockchain network linked to Crypto.com, rolled back its ledger to undo most of a $120.4 million DeFi exploit on Tectonic, recovering about $111.2 million. The attacker manipulated the price of Tectonic's governance token TONIC to borrow assets far beyond its real value. Validators halted block production and restored the chain to a state before the attack, erasing nearly two hours of transactions. However, $9.19 million had already been moved off-chain through bridges and cannot be recovered, highlighting limits of blockchain rollbacks. Cronos is working with exchanges and investigators to trace the lost funds, but recovery remains uncertain. This incident underscores risks in DeFi lending protocols that accept low-liquidity tokens as collateral and rely on vulnerable price feeds.
