Balance Coin drops 99% after $915k 42DAO oracle exploit

Balance Protocol native token BLC has crashed by 99% following a major security breach. The exploit targeted 42DAO, the organization managing the protocol on BNB Chain, leading to a loss of roughly $915,000.

Blockchain security firm PeckShield reported that attackers exploited a flaw in the BTCB oracle price update mechanism. By manipulating the price feed, the hackers triggered massive liquidations and left the protocol with heavy bad debt. They then minted fresh BLC tokens and dumped them on the open market for USDT.

Following the dump, BLC plummeted to nearly zero, trading around $0.001358. Oracle vulnerabilities remain a constant threat for decentralized finance projects, and traders should watch for updates from the 42DAO team regarding recovery efforts or security patches.