Balance Coin (BLC), a stablecoin running on BNB Chain, collapsed by more than 99% on July 22 after an attacker manipulated a price oracle and drained roughly $912,000 in bitcoin-pegged collateral from vaults managed by 42DAO, the protocol's governing organization. Security firms Peckshield and Slowmist confirmed the exploit within hours.
How the exploit worked
The attacker targeted the oracle that feeds price data to Balance Coin's minting and redemption system. By feeding false price information, they were able to withdraw bitcoin-backed collateral from 42DAO's vaults at artificially favorable rates. The stolen funds amount to about $912,000, according to on-chain data verified by Peckshield and Slowmist.
What happened to the stablecoin
After the manipulation, Balance Coin's peg broke completely. The token lost more than 99% of its value, effectively wiping out the stablecoin's market cap. Trading was halted on several decentralized exchanges that listed BLC, though the exact number of affected platforms is not yet clear.
Who is 42DAO
42DAO is the decentralized autonomous organization that governs the Balance Coin protocol. It controls the vaults that hold the bitcoin-backed collateral meant to back the stablecoin. The attacker drained those vaults directly, meaning the collateral backing BLC is now gone.
What comes next
Neither 42DAO nor the Balance Coin team have released a formal post-mortem or recovery plan as of July 23. The protocol's smart contracts remain paused on BNB Chain. Users holding BLC are left with near-worthless tokens, and the question of whether any funds can be recovered is unresolved.
