Balance Coin (BLC) Plunges 99% After $915,000 Exploit Hits 42DAO

Balance Coin (BLC) sank more than 99% on Tuesday after DeFi protocol 42DAO was hit by an exploit that security researchers estimate drained roughly $915,000. The attack crushed BLC from near $1 to fractions of a cent, marking another crypto breach in 2026. PeckShield first flagged the incident, estimating losses at about $915,000. SlowMist later released a deeper analysis, pegging the damage closer to $912,000 and attributing the exploit to 42DAO's Median Oracle, which allegedly injected an abnormally low BTCB price into the system. SlowMist said the attacker used the protocol's Spotter "poke" function to write the faulty price directly into the VAT contract. The firm noted the Spotter contract lacked key protections, including price deviation checks, maximum drawdown limits, and a minimum price floor. Once the manipulated price entered the accounting layer, the Dog module reportedly processed it without liquidation delay or oracle validation, enabling immediate liquidations across multiple BTCB vaults in a single transaction. SlowMist identified the attacker wallet as 0x9d8d…231c and the victim contract as 0x973a…a9c0c. The exploited Spotter and Dog contracts were listed as 0x849d…29288 and 0x0010…1f634e. Market data from GeckoTerminal showed BLC trading around $0.0025 at the time of writing, down 99.75% over 24 hours from roughly $0.997. The token's market capitalization fell to about $12,000. Trading volume reached $94,900 across more than 1,600 transactions, with over 1,000 buys and the remainder sells. 42DAO adds to a growing series of DeFi and bridge exploits this year. Allbridge, a crosschain stablecoin bridge, paused activity on July 20 after a hacker stole $1.65 million. Investigators said the attacker used flash-loan-funded transactions to manipulate stablecoin pool ratios and extract funds from distorted liquidity pools. In June, Syscoin suffered a bridge exploit that allowed an attacker to mint up to 5 billion SYS tokens, triggering a near 20% price drop. A month earlier, Echo Protocol suspended crosschain transactions following an exploit involving the minting of 1,000 eBTC, sending Echo's native token down more than 12%. While the mechanics differed across incidents, researchers said the 42DAO exploit followed a familiar pattern: no cryptography was broken and no keys were stolen. Instead, the attacker capitalized on missing safeguards around price feeds and liquidation logic. The post "Balance Coin (BLC) Crashes 99% After 42DAO Suffers Exploit" appeared first on CryptoPotato.