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Crypto 'Price Manipulation' Hacks Surge as Attackers Exploit Loan Protocols
Technology Services · Internet Software/Services · yonhap_finance · 2026-09-01
Market manipulation hacks, where attackers inflate token prices to secure massive loans, have hit a record high, accounting for 12.5% of all crypto thefts.
What Happened
Surge in Market Manipulation Hacks: A new wave of cyberattacks targeting cryptocurrency platforms involves artificially inflating token prices to secure large loans before abandoning the protocol. Blockchain analytics firm TRM Labs reports that these market manipulation exploits have reached an all-time high this year.
The Tectonic Platform Incident: In a recent attack on the Tectonic lending platform, hackers drove the price of the low-liquidity TONIC token up by nearly 100 times in just 20 minutes. This allowed them to borrow approximately $75 million in assets, causing significant financial damage to the platform.
Money Laundering Tactics: A portion of the stolen funds was quickly converted into stablecoins and then into Ethereum to obscure the trail. Attackers are increasingly utilizing cross-chain bridge services that lack strict Know Your Customer (KYC) protocols to launder the stolen assets.
Growing Security Concerns: TRM Labs noted that such incidents have jumped from just one in 2022 to 32 this year. These exploits now account for 12.5% of all crypto-related hacks, highlighting a critical vulnerability in decentralized finance lending protocols.