Balance Coin drops 99% after $915K exploit hits 42DAO

Balance Coin (BLC) lost over 99% of its value after a $915,000 exploit. Attackers manipulated the oracle, minted BLC, and sold them, causing the stablecoin to depeg.

Balance Coin (BLC), an algorithmic stablecoin on the BNB Chain, suffered a dramatic collapse on July 22, plummeting from nearly $1 to about $0.0013 and losing over 99% of its value. The crash followed a security breach involving 42DAO, the decentralized organization behind Balance Protocol, and GemJoin. Blockchain security firms PeckShield and SlowMist identified a vulnerability in the protocol’s oracle system. This flaw allowed attackers to manipulate prices and mint millions of BLC tokens, which were rapidly sold on decentralized exchanges. The resulting sell-off caused the stablecoin to lose its peg. The exploit led to estimated losses between $912,000 and $915,000. The incident highlights significant vulnerabilities in 42DAO’s protocol compared to others with stronger security. As of now, 42DAO has not released a detailed post-mortem, leaving many questions about the breach unanswered.